Builder confidence falls as affordability concerns rise

​​​​WASHINGTON – Nationally, builder confidence in the single-family housing market fell eight points to 60 in November ​​on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

"​For the past several years, shortages of labor and lots along with rising regulatory costs have led to a slow recovery in single-family construction," said NAHB Chief Economist Robert Dietz. "While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall."

All of the major HMI indices posted declines. The current sales conditions metric fell seven points to 67, the index measuring expectations in the next six months dropped ten points to 65, and the ​buyer traffic metric dropped eight points to 45.

​​Regionally, the South’s HMI dropped two points to 68.