Home » Economy » Homebuilders see 'housing recession' as sentiment plunges to fresh 2-year low
Homebuilders see 'housing recession' as sentiment plunges to fresh 2-year low
Red hot rentals indicate housing prices will stay high: Suzanne Miller
Empire State Properties founder and president reacts to economist Mark Zandi warning a housing correction is coming on ‘Cavuto: Coast to Coast.’
Confidence among builders in the U.S. housing market plunged more than expected in August to the lowest level since the beginning of the COVID-19 pandemic as painfully high inflation and rising borrowing costs forced potential buyers to pull back.
The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, fell for the eighth consecutive month to 49, marking the worst stretch for the housing market since the 2008 financial crisis.
Any reading above 50 is considered positive; the gauge has not entered negative territory since a brief – but steep – drop in May 2020.
The index has fallen considerably from just one year ago, when it stood at 80. It peaked at a 35-year high of 90 in November 2020, buoyed by record-low interest rates at the same time that American homebuyers – flush with cash and eager for more space during the pandemic – started flocking to the suburbs.