All three index components registered declines this month. The sentiment for present single-family sales dropped by six points from 45 to 39, while that for future single-family sales slid four points to 31, hitting another record-low for the decade. The data for present single-family sales and the traffic of prospective buyers were also at their softest levels since April 2020, Bloomberg said, and a majority of American consumers reportedly do not plan to move in the coming year.
On a regional scale, the NAHB index revealed that builder sentiment fell in all regions except the West, with the Northeast registering a 17-point drop from the previous month – the largest across all regions.
The housing market, which is especially susceptible to higher borrowing costs, has been among the first sectors to feel the impact of the Federal Reserve’s tightening campaign.