Traffic of Prospective Buyers from the National Association of Home Builders (NAHB) fell for the fourth straight month after this month’s six point decline. The decline was driven by surging mortgage rates, as the average 30-year mortgage rate just reached 5% for the first time since 2011. NAHB Chief Economist Robert Dietz commented on the housing affordability crisis by saying: “The housing market faces an inflection point as an unexpectedly quick rise in interest rates, rising home prices and escalating material costs have significantly decreased housing affordability conditions, particularly in the crucial entry-level market.” Traffic of Prospective Buyers is now just one point above last year’s lows, which if broken, would generate a bearish warning flag for the housing market.
