The NAHB survey of homebuilder sentiment fell for the 5th straight month in May to its lowest since June 2020… but has a long way to go to catch down to homebuyer sentiment…
All 3 of the underlying indices tumbled:
- Measure of present single family sales falls to 78
- Future single family sales gauge fell to 63 vs 73
- Prospective buyers traffic measure fell to 52 vs 61
“The housing market is facing growing challenges,” Robert Dietz, chief economist at the NAHB, said in a statement.
“Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family. Entry-level and first-time home buyers are especially bearing the brunt of this rapid rise in mortgage rates.”
By region, builder sentiment declined in all regions except the Northeast.
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