Builder confidence stumbled for the eighth consecutive month in August, falling six points to a level of 49—the first time since May 2020 it has been below the 50 mark, according to the National Association of Home Builders. Builder confidence levels above 50 indicate generally positive views of the market.
“Ongoing growth in construction costs and high mortgage rates continue to weaken market sentiment for single-family home builders,” NAHB Chairman Jerry Konter said in a statement.
The volume of single-family starts is on track to post a decline in 2022, the first such decrease since 2011, according to NAHB Chief Economist Robert Dietz.
“However, as signs grow that the rate of inflation is near peaking, long-term interest rates have stabilized, which will provide some stability for the demand-side of the market in the coming months,” Dietz added.
