Builder confidence declined two points in April to a level of 77 on the National Association of Home Builders/Wells Fargo Housing Market Index. It is the fourth consecutive month of builder confidence declines, as interest rates, home prices and construction costs have continued to surge.
“Despite low existing inventory, builders report sales traffic and current sales conditions have declined to their lowest points since last summer as a sharp jump in mortgage rates and persistent supply chain disruptions continue to unsettle the housing market,” NAHB Chairman Jerry Konter said in a statement.
Mortgage interest rates increased more than 1.9 percentage points since the beginning of 2022 and, at 5%, were the highest level in more than a decade, according to NAHB.
Builder confidence levels above 50 are considered positive.
