Homebuilder sentiment improves on late spring surge in demand
Homebuilder sentiment has shown a slight improvement due to a potential surge in demand during late spring. The National Association of Home Builders/Wells Fargo Housing Market Index rose 3 points in May, reaching a level of 37. Despite this increase, the sentiment remains below the neutral mark of 50, indicating ongoing challenges in the housing market.
- ▪Homebuilder sentiment rose 3 points in May to a readout of 37 on the NAHB/Wells Fargo Housing Market Index.
- ▪The index is still below the neutral mark of 50, indicating negative sentiment overall.
- ▪The average rate on a 30-year fixed mortgage is currently 6.65%.
- ▪Higher mortgage rates and economic uncertainty continue to impact potential homebuyers.
- ▪The index was at 34 in May 2025 when mortgage rates were around 7%.
Opening excerpt (first ~120 words) tap to expand
Higher mortgage rates, rising gas prices and continued economic uncertainty over the war with Iran are all still weighing on potential homebuyers. Builders, however, are feeling slightly better about their businesses, seeing a potential late spring surge.After a sharp drop in April, homebuilder sentiment in the market for single-family homes rose 3 points in May to a readout of 37 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Housing economists had expected the index to remain unchanged month over month. Still, anything below 50 on the index is considered negative sentiment. The index stood at 34 in May 2025, when mortgage rates were hovering around 7%. They are lower now, but have been rising over the past few weeks.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
