The National Association of Home Builders (NAHB) reported that the Traffic of Prospective Buyers fell by -5 points in August –its seventh decline in eight months– as affordability challenges persist. The combination of still stratospheric housing prices and mortgage rates holding near the highest level in a decade is keeping many would-be buyers on the sidelines.
We see a collapse in the housing market as one of the biggest risks facing the U.S. economy, as it would likely exacerbate the depth and duration of an economic recession. So, the warning flag being raised by this, and other leading housing indicators, should not be ignored.
Eli Petropoulos, CFA – Sr. Market Analyst
