flexiblefullpage - default
Currently Reading

Builder Sentiment Is Still Down in November, but Forecast Indicates Improving Conditions

Advertisement
billboard - default
Builders

Builder Sentiment Is Still Down in November, but Forecast Indicates Improving Conditions

Mortgage rates approaching 8% earlier in November did little to boost builder confidence, but recent macroeconomic data indicate conditions could improve in the coming months


November 17, 2023
Builder reviewing paperwork on home jobsite
Image: Grispb / stock.adobe.com

Increasing interest rates since the end of August priced a large number of prospective buyers out of the market, dampening builder views of market conditions in November, according to the National Association of Home Builders' Eye on Housing. In addition, higher short-term interest rates meant increased costs for financing for builders and land developers, adding another hurdle for builders seeking to take advantage of a housing market low on resale inventory. 

Builder confidence in the market for newly built single-family homes in November fell six points to 34 in November, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the fourth consecutive monthly drop in builder confidence, as sentiment levels have declined 22 points since July and are at their lowest level since December 2022. Also of note, nearly the entire HMI data for November was collected before the latest Consumer Price Index was released and showed that inflation is moderating. ...

While builder sentiment was down again in November, recent macroeconomic data point to improving conditions for home construction in the coming months. In particular, the 10-year Treasury rate moved back to the 4.5% range for the first time since late September, which will help bring mortgage rates close to or below 7.5%. Given the lack of existing home inventory, somewhat lower mortgage rates will price-in housing demand and likely set the stage for improved builder views of market conditions in December.

Read more

 

Advertisement
leaderboard2 - default

Related Stories

NAHB

NAHB CEO and President Jim Tobin's 2024 Housing Outlook

From affordability to homebuyer trends, Tobin offer insights into the future of the housing market

Build to Rent

Single-Family Build-to-Rent Construction Levels Off

Despite the flat readings for Q3 2022, NAHB anticipates the SFBTR market will expand in coming quarters as a result of mortgage interest rates remaining high

NAHB

NAHB Careers in Construction Month Inspires Students to Pursue Skilled Trades

During October, a number of building associations and National Association of Home Builders members across the country joined in the effort to inspire younger generations to pursue careers in the skilled trades

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.