Builder confidence continues to fall, hitting a low of 34 in July, driven by high interest rates. While overall housing starts spiked in June, growth was limited to multifamily, with single-family starts remaining flat.
The construction sector shows mixed signals, with multifamily starts up but single-family starts and completions down. Builder confidence rose slightly but remains low (HMI 37), as contractors face a slower market, consumer hesitation, and declining entry-level home prices.
Builder confidence is declining due to rising mortgage rates and economic uncertainty. Housing permits are down, especially in the South and West, signaling a potential market slowdown. Price cuts are increasing.
