Builder confidence fell four points in October to a level of 40 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
It’s the lowest level since January 2023 and 10 points below the neutral 50 level on the index, meaning more builders view conditions as “poor” than “good.” It’s also the third consecutive month of declines in builder sentiment.
“Builders have reported lower levels of buyer traffic, as some buyers, particularly younger ones, are priced out of the market because of higher interest rates,” NAHB Chairman Alicia Huey said in a statement.. “Higher rates are also increasing the cost and availability of builder development and construction loans, which harms supply and contributes to lower housing affordability.”
Mortgage rates have grown nearly 40 basis points to 7.57% since late September, according to Freddie Mac.
“The housing affordability crisis can only be solved by adding additional attainable, affordable supply,” added NAHB Chief Economist Robert Dietz.
