Overview
- The NAHB/Wells Fargo Housing Market Index fell two points to 35 on Monday, marking the 14th straight month below 40 and the longest stretch since 2011–2012.
- U.S. housing starts dropped 15.4% in May to a 1.177 million seasonally adjusted annual rate, with multifamily starts plunging 41.6% and single‑family starts easing to 882,000.
- Building permits were little changed at a 1.413 million pace while single‑family permits ticked up 0.6% to 886,000, a gap that shows many projects are approved but not being put into construction.
- Builders are responding to weak demand and higher costs by cutting prices and offering incentives, with 35% reporting price reductions averaging 6% and 62% using sales incentives for the 15th consecutive month.
- Pending home sales rose 3.8% month‑over‑month and 4.8% year‑over‑year in May, but the sector faces a roughly 1.2 million home shortfall and persistently high mortgage rates above 6% that keep affordability constrained for many buyers.