U.S. builder confidence for new single-family homes in June was 43, declining two points from May 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 continually high mortgage rates are a main contributor to prospective buyers’ hesitancy. The HMI component that tracks current sales slid three points to 48, and the measurement of sales expectations for the next six months dropped four points to 47 in June. The prospective buyer traffic component was 28, a decrease of two points compared to last month.
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
