Builder confidence declined six points in November to a level of 34 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. It’s the fourth consecutive decline and the lowest builder sentiment on record since December 2022.
Builder confidence has tumbled 22 points on the index since July.
“The rise in interest rates since the end of August has dampened builder views of market conditions, as a large number of prospective buyers were priced out of the market,” stated NAHB Chairman Alicia Huey. “Moreover, higher short-term interest rates have increased the cost of financing for home builders and land developers, adding another headwind for housing supply in a market low on resale inventory.”
Index levels of 50 and above indicate more builders view market conditions as “good” than “poor.”