The National Association of Home Builders’ monthly Housing Market Index is based on a survey of builders. The survey asks builders for their perception of the current market for newly built, single-family homes and scores their responses on a scale where any number over 50 indicates more builders view conditions as good than poor. In September, the index fell below 50 for the first time in five months, dropping to 45. Robert Dietz, NAHB’s chief economist, says mortgage rates have slowed buyers. “High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower,” Dietz said. In response, more home builders are cutting prices to lure buyers. In fact, 32 percent of builders reported cutting home prices in September, up from 25 percent in August and the highest share yet this year. (source)
