NAHB Housing Market Index Falls to 29 in October: Lowest Since June 2012 as 43% of Builders Cut Prices
The National Association of Home Builders (NAHB) reported on October 19 that the NAHB/Wells Fargo Housing Market Index (HMI) fell three points to 29 in October, its lowest reading since June 2012, as rising mortgage rates, higher energy and material costs, and worsening labor and lot conditions weighed on builder sentiment.
All three major components declined in October. The index for current sales conditions fell two points to 33, sales expectations for the next six months dropped five points to 32, and the index for traffic of prospective buyers fell five points to 18. Any HMI reading above 50 means more builders rate conditions as good than poor, so 29 sits far below that line.
"Mortgage rates have climbed well above 7% in recent weeks, and higher gas prices and inflation have further weakened buyer traffic across much of the country," said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio.
NAHB Chief Economist Robert Dietz said housing remains squeezed by supply-side constraints and affordability challenges: demand persists, but higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping more buyers on the sidelines, and buyer traffic has fallen to its lowest level since April 2012, excluding the onset of the pandemic in April 2020.
The survey also found that 43 percent of builders cut prices in October, the highest share during the 2020-2026 period, with the average cut holding at 6 percent for a seventh straight month. In October, 65 percent of builders reported using sales incentives.
(Source: National Association of Home Builders)
Source: National Association of Home Builders
Published by GSM · USA (original Chinese edition)
Photo: 密歇根州一处在建新屋（资料图）。Dwight Burdette 摄，CC BY 3.0，经 Wikimedia Commons。 / A new home under construction in Michigan (file photo). Photo by Dwight Burdette, CC BY 3.0, via Wikimedia Commons.
