Builder confidence in the market for newly-built single-family homes was 47 in January, up one point from December, according to the National Association of Home Builders /Wells Fargo Housing Market Index.
“Builders are facing continued challenges for housing demand in the near-term, with mortgage rates up from near 6.1% in late September to above 6.9% today,” NAHB Chairman Carl Harris said in a statement. “Land is expensive, and financing for private builders remains costly.”
The HMI survey found 30% of builders cut home prices in January. The average price reduction in January was 5%, the same rate as in December.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
Read the full report here.
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