Home builder confidence continued to decrease in June, according to the latest data from the National Association of Home Builders (NAHB). Their Housing Market Index fell from 34 in May to 32 in June, marking its third lowest level since 2012 and remaining well below the important 50-point mark that distinguishes expansion from contraction.
All key components of the index declined further into contraction: buyer traffic slipped by 2 points to 21, current sales also declined by 2 points to 35, and sales expectations for the next six months dropped 2 points to 40.
What’s the bottom line?
The NAHB links this ongoing decline in builder confidence to persistent high interest rates, concerns about tariffs, and overall economic uncertainty, leading more potential buyers to delay purchasing decisions. Robert Dietz, Chief Economist for the NAHB, stated that these factors have led the association to project a decrease in single-family housing starts for this year.
