The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) declined 2 points to 39 in August. This is the lowest reading since December 2023.
“Challenging housing affordability conditions remain the top concern for prospective home buyers in the current reading of the HMI, as both present sales and traffic readings showed weakness,” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kansas. “The only sustainable way to effectively tame high housing costs is to implement policies that allow builders to construct more attainable, affordable housing.”
“With current inflation data pointing to interest rate cuts from the Federal Reserve and mortgage rates down markedly in the second week of August, buyer interest and builder sentiment should improve in the months ahead,” said NAHB Chief Economist Robert Dietz.
The HMI Index charting current sales conditions in August fell 2 points to 44, the component measuring sales expectations in the next six months increased 1 point to 49 and the gauge charting traffic of prospective buyers declined by 2 points to 25.
Looking at the three-month moving average for regional HMI scores, the Northeast fell 4 points to 52, the Midwest dropped 4 points to 39, the South decreased 2 points to 42 and the West held steady 37.
Read the NAHB release.
