Homebuilder sentiment fell for the ninth straight month in September. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) cited interest rates, supply chain disruptions, and home prices as ongoing culprits in the decline.

Builder confidence in the newly-built single-family home market fell three points to 46 in September. This is the lowest level since May 2014 (except for a period in the spring of 2020).

“Builder sentiment has declined every month in 2022, and the housing recession shows no signs of abating as builders continue to grapple with elevated construction costs and an aggressive monetary policy from the Federal Reserve that helped pushed mortgage rates above 6% last week, the highest level since 2008,” said NAHB Chief Economist Robert Dietz. “In this soft market, more than half of the builders in our survey reported using incentives to bolster sales, including mortgage rate buydowns, free amenities, and price reductions.”

All three HMI components fell in September. Current sales conditions dropped three points to 54. Sales expectations in the next six months declined one point to 46. The traffic of prospective buyers fell one point to 31.

Regionally, all four areas declined as well.

The Northeast fell five points to 51. The Midwest dropped five points to 44. The South fell seven points to 56. The West fell 10 points to 41.

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