- Prior month 51
- NAHB housing market index 45 vs 51 estimate and 51 last month. The 2nd weakest level of the year (January was at 44)
- Current single home sales 51 versus 57 in April
- Home sales over next six-months 51 versus 60 in April
- Prospective buyers 30 versus 34 in April
Comments from NAHB Members:
- Carl Harris, NAHB Chairman:
- Market slowdown due to increased mortgage rates, pushing potential buyers to the sidelines.
- Concerned about new codes requiring HUD and USDA to insure mortgages for homes built to the 2021 International Energy Conservation Code, increasing construction costs.
- Robert Dietz, NAHB Chief Economist:
- Lack of progress on reducing inflation has pushed long-term interest rates higher, dragging builder sentiment.
- The need to reduce shelter inflation by constructing more attainable, affordable housing.
Home Prices and Sales Incentives:
- 25% of builders cut home prices in May to boost sales, ending a four-month decline in price reductions.
- Average price reduction held steady at 6% for the 11th straight month.
- Use of sales incentives increased to 59% in May from 57% in April.
Looking at the three-month moving averages for regional HMI scores, the
- Midwest increased three points to 49,
- Northeast fell two points to 61,
- South dropped two points to 49 and the
- West posted a four-point decline to 43.
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