US NAHB January home builder sentiment index 37 vs 40 expected

The NAHB Home Builder sentiment index reported a disappointing 37, falling short of the expected 40, indicating ongoing weakness in the housing market. Current single-family home sales dropped to 41 from 42 previously, and future sales expectations fell to 49, below the last reading of 52. Furthermore, prospective buyer traffic decreased to 23 from 26. Notably, 40% of builders reported cutting prices, and the use of sales incentives reached 67%, the highest since the post-Covid period. This reflects continued pressure on builders amid high mortgage rates and rising construction costs, resulting in low confidence levels close to pandemic lows. Despite the recent uptick in 30-year yields, the housing market recovery remains challenging as builders cope with multiple pressures.