Homebuilder confidence fell for the eighth straight month in August, with experts blaming elevated mortgage rates and construction expenses for the crisis.
According to data from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence for newly built single-family homes declined by six points, to 49, this month, the first time since May 2020 that the index has fallen below the 50 level, an Aug. 15 press release said.
NAHB Chief Economist Robert Dietz cited high construction costs and the tighter monetary policy adopted by the Federal Reserve for having created a “housing recession.”
“The total volume of single-family starts will post a decline in 2022, the first such decrease since 2011. However, as signs grow that the rate of inflation is near peaking, long-term interest rates have stabilized, which will provide some stability for the demand-side of the market in the coming months,” he said in the release….