As buyer traffic weakened, home builders grew more pessimistic about the new home market. Many continue to worry about the impact from decreasing affordability.
An indication of home builder confidence, the Housing Market Index, was calculated to be 67 as of August. An index in excess of 50 indicates that more builders view conditions as good than poor.
This month’s index moved lower by a point from a month earlier and also turned out to be the lowest index level since September 2017, when hurricanes brought down builder confidence.
Source: Mortgage Daily