Builder confidence fell for the 10th consecutive month in October, reaching the lowest level—38—since August 2012 (excluding the lockdown-impacted spring of 2020), according to the National Association of Home Builders.
The eight-point drop from September was largely due to surging mortgage rates weakening demand, NAHB stated. The confidence level is half of what it was six months ago.
“This will be the first year since 2011 to see a decline for single-family starts,” NAHB Chief Economist Robert Dietz said in a statement. “While some analysts have suggested that the housing market is now more ‘balanced,’ the truth is that the homeownership rate will decline in the quarters ahead as higher interest rates and ongoing elevated construction costs continue to price out a large number of prospective buyers.”
Builder confidence levels 50 and above are considered positive.
