U.S. homebuilder sentiment rose in July to the highest level in 13 months as buyers continued to opt for new construction amid a
The National Association of Home Builders/Wells Fargo gauge increased for a seventh-straight month, to 56 from 55 in June. The figure matched the median estimate in a Bloomberg survey of economists.
Despite the improvement in sentiment, the homebuilder index remains below end-of-2021 levels, when mortgage rates were lower.
"Although builders continue to remain cautiously optimistic about market conditions, the quarter-point rise in mortgage rates over the past month is a stark reminder of the stop and start process the market will experience as the Federal Reserve nears the end of the ongoing tightening cycle," said NAHB Chief Economist Robert Dietz.
The index of current sales rose to a one-year high of 62, while the expectations gauge moderated to 60. The prospective buyer traffic component advanced to 40, marking the highest reading since June 2022.
The use of incentives to attract buyers declined, with the share of builders reducing home prices falling to 22% in July from 25% in June. Sentiment increased in the Northeast and West regions, while moderating in the Midwest and the South.
Data on housing starts and building permits for the month of June are due Wednesday.
