NAHB Builder Confidence declined by one point to a reading of 83 in January’s reading. While it remains at a strong historical level, the fact that Builder Confidence peaked over a year ago suggests that it may have already seen its high for this cycle. Inflation concerns were the primary factor contributing to this month’s decline, as stated by the NAHB: “Growing inflation concerns and ongoing supply chain disruptions snapped a four-month rise in home builder sentiment even as consumer demand remains robust.” This leading housing indicator remains on solid ground for the time being. Yet, if mortgage rates continue to rise and supply chain disruptions persist, homebuilders could start feeling less optimistic in a hurry.
