The NAHB/Wells Fargo Housing Market Index (HMI) fell 2 points in June to 68 and all three indices-present sales, future sales and buyer traffic-declined 1 point, noted analysts at Wells Fargo. They explained that affordability concerns may be inhibiting buyers.
Key Quotes:
“Builder confidence slipped to 68 points in June and is now just below its six-month average of 70. Strong overall economic growth is widely expected to keep demand growing solidly, but buyers are increasingly running up against affordability hurdles.”
“All three components of the index fell 1 point in June, with buyer traffic and future sales expectations reaching their lowest levels since November.”
“Despite June’s overall drop, builder confidence is still trending higher and improved in the Northeast and West, rising to 61 and 76, respectively. The Northeast HMI is the highest since 2005.”
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