The NAHB housing market index fell three points to 29, its lowest level since June 2012, versus analysts’ expectation of a one-point drop. The 30-year fixed mortgage rate is 7.5%, while housing indexes are down 10.3% and 11.8% year to date.
The National Association of Home Builders’ housing market index fell three points to 29, its lowest level in 14½ years. Analysts had expected a one-point decline. The index remains below 50, the dividing line between optimism and pessimism.
The average 30-year fixed mortgage rate is 7.5%, its highest level since November 2023. NAHB chief economist Robert Dietz said higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping buyers on the sidelines; buyer traffic fell to its lowest level since April 2012.
The S&P 1500 Homebuilding Index and the PHLX Housing Sector Index are down 10.3% and 11.8% year to date, respectively, while the S&P 500 is up about 12%. The indexes’ earlier outperformance faded in March as higher interest rates pushed mortgage rates higher.
