Homebuilder confidence plummets to the lowest level in more than two years as 'demand stalls'

Rising mortgage rates and continued home price growth are hurting affordability and fast becoming a toxic cocktail for the nation's homebuilders.

Sentiment among homebuilders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index. That is the lowest reading since August 2016, but anything above 50 is still considered positive. The index stood at 69 in November of last year and hit a cyclical high of 74 last December.

"Builders report that...

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Here’s How the Labor Shortage Is Impacting Housing, by the Numbers

NAHB Economist Robert Dietz breaks down the ways the lack of skilled construction labor is affecting the housing market.

 

Among the benefits of firming economic growth—GDP increased at a 4.2 percent annualized rate in the second quarter of 2018, the fastest pace since 2014—is ongoing job creation and low unemployment. At 3.7 percent, the current unemployment rate risks being too low. Right now there are more open, unfilled jobs in the economy than there are...

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Home price gains fall below 6% for the first time in a year: August S&P Case-Shiller index

Mortgage interest rates didn't begin their recent surge until the start of September, but home prices were already feeling pressure, as fewer people could afford what was for sale.

Nationally, prices rose 5.8 percent in August compared with August 2017, according to the S&P CoreLogic Case-Shiller home prices index. That is less than the 6 percent annual gain in July.

The index's 10-City Composite rose 5.1 percent annually, down from 5.5 percent in the previous month. The 20-City Composite...

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Housing Is Still Affordable in the United States!

Lately, there have been many headlines circulating about whether or not there is an “affordability issue forming in the housing market.”

If you are considering selling your current house and moving up to the home of your dreams, but are unsure whether or not to believe what you’re seeing in the news, let’s look at the results of the latest Housing Affordability Report from the National Association of Realtors (NAR).

According to NAR:

“A value...

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