Home builder sentiment dropped in January after a four-month straight increase due to growing inflation concerns and ongoing supply chain constraints.
- Builder confidence in the market for newly-built single-family homes dropped by one point to 83 in January.
- The HMI averaged around 83 or 84 levels, the same rate as the level reported in the spring of 2021 for the last three months.
- Chuck Fowke NAHB Chairman stated that higher material costs and lack of availability are prolonging the normal single-family construction duration.
- Fowke further stated that NAHB analysis signals the aggregate cost of residential construction materials has expanded nearly 19% since December 2021.
Policymakers need to take action to improve supply chains, including getting a new softwood lumber agreement with Canada and lowering tariffs.
DXY up +0.35%, EUR USD down-0.41%Source: NAHBNow