US May NAHB Housing market index 45 vs 51 estimate

• Prior month 51
• NAHB housing market index 45 vs 51 estimate and 51 last month. The 2nd weakest level of the year (January was at 44)
• Current single home sales 51 versus 57 in April
• Home sales over next six-months 51 versus 60 in April
• Prospective buyers 30 versus 34 in April

Comments from NAHB Members:

• Carl Harris, NAHB Chairman:
  • Market slowdown due to increased mortgage rates, pushing potential buyers to the sidelines.
  • Concerned about new codes requiring HUD and USDA to insure mortgages for homes built to the 2021 International Energy Conservation Code, increasing construction costs.
• Robert Dietz, NAHB Chief Economist:
  • Lack of progress on reducing inflation has pushed long-term interest rates higher, dragging builder sentiment.
  • The need to reduce shelter inflation by constructing more attainable, affordable housing.

• Home Prices and Sales Incentives:

  • 25% of builders cut home prices in May to boost sales, ending a four-month decline in price reductions.
  • Average price reduction held steady at 6% for the 11th straight month.
  • Use of sales incentives increased to 59% in May from 57% in April.

It’s For the full report, CLICK HERE

This article was written by Greg Michalowski at www.forexlive.com.