Notizie economiche
15.05.2024

U.S. homebuilder confidence unexpectedly deteriorates in May

The National Association of Homebuilders (NAHB) announced on Wednesday its housing market index (HMI) fell to 45 in May from an unrevised April reading of 51. This marked the first drop in builder confidence in six months and was the lowest reading since January (44). 

Economists had anticipated the HMI to hold steady at 51.                                                                                              

A reading over 50 indicates more builders view conditions as good than poor.

All three major HMI components demonstrated declines in early May. The component charting sales expectations in the next six months plunged 9 points to 51, while the component tracking current sales conditions decreased 6 points to 51, and the component measuring traffic of prospective buyers dropped 4 points to 30. 

Commenting on the latest report, NAHB Chairman Carl Harris said that the market had slowed down since mortgage rates increased and this had pushed many potential buyers back to the sidelines.

Meanwhile, NAHB Chief Economist Robert Dietz noted that a lack of progress on reducing inflation pushed long-term interest rates higher in the first quarter and this is acting as a drag on builder sentiment. “The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing,” he added.

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