Builder confidence declined for the 11th consecutive month in November, falling to 33 on the National Association of Home Builders/Wells Fargo Housing Market Index.
Not counting the COVID-19 lockdown-impacted spring of 2020, it is the lowest level of builder confidence since June 2012.
“Higher interest rates have significantly weakened demand for new homes as buyer traffic is becoming increasingly scarce,” NAHB Chairman Jerry Konter said in a statement.
Although housing prices have started to moderate, building and material costs have remained high, NAHB Chief Economist Robert Dietz added.
Builder confidence levels over 50 indicate more builders view conditions as good than poor.