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Homebuilder confidence has fallen to its lowest level since 2012, as reported by the latest National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index. Rising mortgage rates and higher costs for energy and materials have pushed builder sentiment to a 14-year low. Robert Dietz, NAHB Chief Economist, noted that these factors are keeping more buyers on the sidelines.
According to Mortgage News Daily, builder confidence saw a slight increase in March, but sentiment remained subdued due to ongoing affordability concerns. The headline index rose one point to 38, which is still below the breakeven level of 50 that separates positive from negative market conditions.
NAHB Chairman Bill Owens highlighted that affordability remains a top concern for both buyers and builders. Many prospective buyers are waiting for lower interest rates and greater economic clarity, while builders face elevated land, labor, and construction costs.
Dietz echoed these concerns, pointing to global events and energy prices as potential headwinds for the housing market. However, he also mentioned that efforts to reduce regulatory burdens on homebuilding could help improve long-term housing supply.