U.S. homebuilder sentiment fell every month in 2022, sinking in December to a level not seen in over a decade outside of the pandemic amid elevated mortgage rates and high construction costs.
The National Association of Home Builders/Wells Fargo gauge dropped 2 points this month to 31, the lowest level since June 2012 excluding the onset of the Covid-19 pandemic, figures showed Monday. The uninterrupted slide this entire year represents the longest stretch on record.
The rapid climb in mortgage rates this year — a result of the Federal Reserve’s aggressive inflation-fighting campaign — crushed buyer demand for homes. At the same time, higher costs for materials and labor have made it more expensive to build. The combination has weighed on builder sentiment and new construction.
