US Homebuilder Sentiment Falls on Softer Demand on Two-Year Low

    Bloomberg News reports that US homebuilder sentiment dropped to a 2-year low in June as surging inflation and higher mortgage rates weighed on the housing demand.


    More on it

    The National Association of Home Builders/Wells Fargo gauge declined two points to 67 in June, the lowest level since June 2020, as indicated by the figures released on Wednesday. That has marked the sixth straight drop in the index.

    There has been a widespread slowdown in the housing market that the homebuilders are facing. A rapid surge in the mortgage rates has crippled affordability and led to a downturn in the sale of homes in recent months. In the meantime, lead times for the materials have remained long, labor is still challenging to find, and the costs are pretty on the higher side.

    According to the chief economist associated with the NAHB, Robert Dietz, the housing market is facing both supply-side and demand-side challenges. He also stated that the cost of materials for residential construction is up by 19% year-over-year, with the price increasing for various building inputs.

    The surge in the mortgage rates on the demand side of the market has priced out a significant number of potential homebuyers for the first half of 2022.

    The prospective buyer of the group’s gauge traffic dropped five points to 48, again the lowest since June 2020. The measure of the current sales also dropped to a two-year low, and the sales expectations declined to the lowest since May 2020 for the next six months.

    Bloomberg News reports that builder sentiment dropped in three to four regions by region. However, in the Midwest, there was an improvement in sentiments.

    Earlier this month, a separate report indicated that 69% of the construction companies reported fewer or no qualifying applicants in May, per a small survey of small businesses carried out by the National Federation of Independent Business.


    RELATED ARTICLES

    investing in Crypto

    Investing in Crypto: A Guide for Smart Investors & Fundamentals

    Investing in cryptocurrencies has turned out to be an international phenomenon, attracting each institutional and...
    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    How To Find the Best FD Interest Rate for Senior Citizens Using an FD Interest Calculator

    FDs are one of the most preferred investment products for senior citizens as they offer...
    When was Studio Ghibli founded

    When Was Studio Ghibli Founded: Japan’s Iconic Animation Legacy

    Studio Ghibli is a popular Japanese animation studio, known by many for its stunning movies,...
    online jobs for students

    Online Jobs for Students: Best ways to Earn Money & Build Skills 

    Balancing academics and price range can be challenging for college students, but online jobs offer...
    Best Trading Apps to Open a Demat Account

    Best Trading Apps to Open a Demat Account: Features & Fees

    Investing in the stock market has become more accessible than ever with trading apps that...
    5 Mistakes to Avoid for Choosing the Best Share Market App

    5 Mistakes to Avoid for Choosing the Best Share Market App

    Investing in the Indian share market is now easier than ever in the current digital...
    pagalmovies bond

    Pagalmovies Bond: Safe Alternative to Download 1080p Movies!

    Accessing films via platforms like Pagalmovies often leads to legal and security headaches. Ever wondered...
    How to save money on Pinterest ads the best virtual cards for media buying

    How to save money on Pinterest ads: the best virtual cards for media buying

    Media buying on Pinterest requires precise budget management. Advertising expenses can be optimised by choosing...
    robots dot to dot nattapong

    Robots Dot to Dot Nattapong: Mind-Blowing Concepts!

    Robots dot to dot Nattapong unveils a fascinating intersection of creativity and technology. Ever wondered...
    Skills Every Criminal Justice Professional Needs to Succeed

    Skills Every Criminal Justice Professional Needs to Succeed

    The field of criminal justice is complex, challenging, and ever-changing. Professionals in this field are...
    Experience Ultimate Comfort with Tempur Mattresses from Benson’s Beds

    Experience Ultimate Comfort with Tempur Mattresses from Benson’s Beds

    In today’s fast-paced world, a good night’s sleep is more important than ever. With the...