American homebuilder confidence fell to a 10-month low in June, dragged by the higher costs and supply-chain shortages.
- The NAHB/Wells Fargo Housing Market Index stood at 81 in June to mark the worst reading since August 2020’s 78. The index was at 83 in May.
- All three major indexes declined by two points in the month — sales conditions down to 86, sales expectations for the next six months to 79, and traffic of prospective buyers to 71.
- Regional HMI scores were down in the Northeast, Midwest, and West, while South posted a slight growth.
- Sentiment was pulled down by the increase in prices of softwood lumber and other construction materials. This drove prospective buyers to spend more and slow down home building activities.
The index remains above 80 to signify strong conditions and continues to be above pre-pandemic levels.