Builder sentiment increased one point to 56 in July—the highest level since July 2022; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to CNBC. It reached a record high of 90 in November 2020.
The increase marks the seventh straight month of gains for the NAHB/Wells Fargo Housing Market Index.
Of the homebuilder index’s three components, buyer traffic rose three points to 40; current sales conditions rose one point to 62; and sales expectations in the next six months decreased two points to 60.
“Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop-and-start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle,” said Robert Dietz, NAHB’s chief economist.
Twenty-two percent of builders reported cutting prices in July, which is down from 25% in June and 27% in May.
