The numbers: The National Association of Home Builders’ monthly confidence index fell 6 points to 49 in August, the trade team stated Monday.
The August reading of 49 is the very first time given that May 2020 that the index fell listed below a break-even step of 50.
The decrease was the 8th straight month in August. Economists surveyed by the Wall Street Journal anticipated the number to be 54.
One year ago, the index stood at 75. In January this year, the index went to 83.
Key details: All three determines that underpin the total builder-confidence index fell.
The gauge that determines current sales problems dropped by 7 factors; the component that tracks website traffic of prospective purchasers fell by 5 factors; as well as the gauge that analyzes sales assumptions for the following six months fell by 2 factors.
Homebuilders in August reported a drop in prospective purchaser traffic to 32 points, which is the most affordable level the gauge has dropped because April 2014 beyond the pandemic.
All regions posted a drop in home builder confidence. The decreases were led by the West, which saw an 11-point decline, adhered to by the Northeast, with a 9-point decrease, the South, with a 7-point decline, and the Midwest, with a 3-point decline.