The mood among American home builders just got a little darker. The NAHB/Wells Fargo Housing Market Index fell two points to 34 in July, down from a revised 36 in June, extending what has become the longest stretch of sub-40 readings since 2012.
That 40 level matters. It’s the line that separates builders who generally feel good about the market from those who don’t. The index has now spent 15 consecutive months below it.
The numbers paint a bleak picture
Every single sub-component of the index declined. Current sales conditions dropped to 37. Sales expectations for the next six months slipped to 43. And prospective buyer traffic fell to a notably weak 23.
The culprits are familiar by now: high mortgage rates, rising material and land costs, and a persistent shortage of skilled labor.
