Economic Report: U.S. home builder confidence plunges in July, NAHB reports

by | Jul 18, 2022 | Stock Market

The numbers: The National Association of Home Builders’ monthly confidence index plunged 12 points to 55 in July, the trade group said Monday. The decline was much larger than expected. Economists surveyed by the Wall Street Journal expected the number to be 66. It is the second largest decline in the history of the index.

One year ago, the index stood at 80. The July reading of 55 was the lowest since May 2020. Key details: The three gauges that underpin the overall builder-confidence index declined. The gauge that measures current sales conditions fell by 12 points; the component that tracks traffic of prospective buyers fell by 11 points; and the gauge that assesses sales expectations for the next six months fell by 11 points. Builder confidence was gloomy across the country: The Northeast fell by 6 points; Midwest by 4; the South by 8; and the West by 12. Big picture: The slowdown in the interest-rate-sensitive housing market is in full effect because of the Federal Reserve’s battle against high inflation. The average rate for a 30-year fixed-rate mortgage rose 21 basis …

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