U.S. builder confidence for new single-family homes in August was 39, declining two points from July and marking the lowest point since December 2023, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). NAHB reported that high mortgage rates and home prices continue to impact prospective buyers. The HMI component that tracks current sales dipped two points to 44, while the measurement of sales expectations for the next six months grew one point to 49 in August. The prospective buyer traffic component was 25, decreasing two points from July.
Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB
