Home builder confidence drops to 14-month low

Home builder confidence drops to 14-month low

Home builder confidence drops to 14-month low
The concerns from home builders about rising construction costs and labor shortages is taking its toll. The National Association of Home Builders reports that its NAHB/Wells Fargo Housing Market Index for August fell five points to a reading of 75. This is the lowest it has been since June 2020.

Although demand for housing remains high, builders are facing the prospect of slimmer profit margins or passing along rising costs to buyers. The rising prices of newly constructed homes has led to a slowdown of buyer traffic.

The NAHB expects that the supply-chain challenges builders are experiencing should ease up in the coming months.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

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