NAHB Housing Market Index Craters to 2-Year Low in July
2022.07.18 17:21
By Geoffrey Smith
Investing.com — Activity in the U.S. housing market slowed the most since the start of the pandemic in July, as high prices, poor affordability and skyrocketing mortgage rates all combined to generate a stiff headwind for the sector.
The National Association of Homebuilders’ monthly index of activity fell to 55 in July – its lowest in over two years – from 67 in June. Analysts had expected the index only to edge down to 66.
The NAHB’s index is weighted to as to give a pointer to housing starts over the next six months. As such, the precipitous drop suggests that the construction sector is in for a significant slowdown over the second half of 2022, under the influence of rising interest rates and squeezed consumer incomes.
