Homebuilder sentiment plunges in July as buyers pull back


Olde Hornet

Olde Hornet

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www.cnbc.com

Homebuilder sentiment plunges in July as buyers pull back

Homebuilder sentiment fell dramatically in July, as both builders and buyers contend with sky-high inflation.
www.cnbc.com www.cnbc.com

Confidence among builders in the nation’s single-family housing market fell in July to the lowest level since the start of the pandemic.
The National Association of Home Builders/Wells Fargo Housing Market Index, a survey designed to gauge market conditions, found builder sentiment dropped 12 points to 55. That marked the largest single-month drop in the survey’s 37-year history with the exception of April 2020, when the reading plummeted 42 points to 30 after the start of the Covid-19 pandemic.

Any rating above 50 on the index is still considered positive, but sentiment has now fallen 24 points since March, when mortgage rates began moving higher. The average rate on the 30-year fixed mortgage has nearly doubled since January and is now hovering just below 6%.
 

I am closing on a new construction next week. We signed the contract on 12/2020, yes 2020. We were blessed to sign before before the spike on materials and sub contractor cost. To build the same plan today the cost is 30% higher. But do to supply chain, qualified subs, and a back log at the permits office our home is just now ready. The Huntsville housing market has not slowed it was actually behind pre-covid, homes are renting at and above 1$ per sq ft per month. We were able to lock APR% before they became outrageous but well above the construction loan rate.:(. So if a bust will bring rates down lets go;). But I really feel for those first time home buyers they can't compete with that cash bag.
 
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