US builder confidence drops for 3rd straight month in October

Posted on October 20, 2023   |  

In October, builder confidence in constructing new single-family homes declined by 4 points to reach 40, following a revised figure from September.

All 3 key components of the Home Builder Confidence Index (HMI) displayed decreases.

The HMI measuring current sales conditions dropped by 4 points, resulting in a reading of 51.

The HMI component gauging sales expectations for the next six months decreased by 5 points, with a reading of 44.

The HMI component tracking the traffic of potential buyers dipped by 4 points, resulting in a reading of 26.

Over the past 3 months, builder sentiment has fallen across all regions.

The Northeast saw a 4-point drop, with a reading of 50.

The Midwest's reading fell by 3 points to 39.

The South experienced a 5-point decline, with a reading of 49.

The West recorded a 6-point drop, with a reading of 41.