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Homebuilder Confidence Plummets

Written by Staff Writer

key 2323278 640Homebuilder confidence plummets to the lowest level in more than two years as 'demand stalls' -CNBC
"Rising mortgage rates and continued home price growth are hurting affordability and fast becoming a toxic cocktail for the nation's homebuilders. Sentiment among homebuilders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index.

That is the lowest reading since August 2016....'Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,' said NAHB Chairman Randy Noel, a builder from LaPlace, Louisiana. 'While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall,' said the NAHB's chief economist, Robert Dietz."