U.S. builder confidence for new single-family homes in July was 42, declining one point from June 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 continue to impact prospective buyers. The HMI component that tracks current sales dipped one point to 47, while the measurement of sales expectations for the next six months grew one point to 48 in July. The prospective buyer traffic component was 27, decreasing one point from June.
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
