US homebuilding sentiment declines in July

By Ovunc Kutlu

ISTANBUL (AA) - Homebuilding sentiment in the US decreased in July, according to a report released on Tuesday.

The National Association of Home Builders/Wells Fargo Housing Market Index came in at 42 in July, down one point from 43 in June.

The index stood at 51 in April and March when it hit its highest level since July 2023.

While above 50 is considered positive for the housing sector, the index measures sentiment among homebuilders and is considered an important indicator for housing investment and consumer spending on appliances and furnishings, which affect the overall economy.

The report said "higher-for-longer" mortgage interest rates, as well as elevated rates for construction and development loans, continue to put a damper on builder sentiment.

The report also said home builders are increasingly cutting prices to bolster sales, noting that 31% of builders did so in July compared to 29% in June and 25% in May.

However, the average price reduction in July held steady at 6% for the 13th straight month, according to the report.