US homebuilding sentiment falls to lowest since December 2023

Lack of affordability, high home prices, buyer hesitation due to elevated interest rates contributed to continued decline, says report

By Ovunc Kutlu

ISTANBUL (AA) - Homebuilding sentiment in the US declined in August to its lowest since December 2023, according to a report released Thursday.

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) fell two points to 39 in August from 41 in July.

The index in March hit its highest since July 2023.

A reading below 50 is considered negative for the housing sector.

"A lack of affordability and buyer hesitation stemming from elevated interest rates and high home prices contributed to the continued decline in builder sentiment," said the report.

All three HMI components in August remained below the key threshold of 50, it added.

Present sales conditions fell two points to 44, while expected sales in the next six months increased one point to 49, and traffic of prospective buyers declined two points to 25.

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.

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