Builder confidence fell for the ninth consecutive month to a level of 46 in September, a three-point drop from August, the National Association of Home Builders announced. Excluding the lockdown-impacted spring of 2020, it’s the lowest confidence level recorded since May 2014.
“Buyer traffic is weak in many markets as more consumers remain on the sidelines due to high mortgage rates and home prices that are putting a new home purchase out of financial reach for many households,” stated NAHB Chairman Jerry Konter. “In another indicator of a weakening market, 24% of builders reported reducing home prices, up from 19% last month.”
Builder confidence levels above 50 are considered positive.