The NAHB survey of homebuilder sentiment fell for the 5th straight month in May to its lowest since June 2020… but has a long way to go to catch down to homebuyer sentiment…
All 3 of the underlying indices tumbled:
Measure of present single family sales falls to 78
Future single family sales gauge fell to 63 vs 73
Prospective buyers traffic measure fell to 52 vs 61
"The housing market is facing growing challenges," Robert Dietz, chief economist at the NAHB, said in a statement.
"Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family. Entry-level and first-time home buyers are especially bearing the brunt of this rapid rise in mortgage rates."
By region, builder sentiment declined in all regions except the Northeast.