{"id":1606703,"date":"2022-08-15T12:33:06","date_gmt":"2022-08-15T16:33:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1606703"},"modified":"2022-08-15T12:33:27","modified_gmt":"2022-08-15T16:33:27","slug":"homebuilders-say-housing-market-is-in-recession","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuilders-say-housing-market-is-in-recession\/","title":{"rendered":"Homebuilders Say Housing Market Is in Recession"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhomebuilders-say-housing-market-is-in-recession%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1606703&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Empire State Properties founder and president reacts to economist Mark Zandi warning a housing correction is coming on &#8216;Cavuto: Coast to Coast.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Confidence among builders in the U.S. housing market plunged more than expected in August to the lowest level since the beginning of the COVID-19 pandemic as painfully high inflation and rising borrowing costs forced potential buyers to pull back.<\/p>\n<p>The National Association of Home Builders\/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, fell for the eighth consecutive month to 49, marking the worst stretch for the housing market since the 2008 financial crisis.<\/p>\n<p>Any reading above 50 is considered positive; the gauge has not entered negative territory since a brief \u2013 but steep \u2013 drop in May 2020.\u00a0<\/p>\n<p>The index has fallen considerably from just one year ago, when it stood at 80. It peaked at a 35-year high of 90 in November 2020, buoyed by record-low interest rates at the same time that American homebuyers \u2013 flush with cash and eager for more space during the pandemic \u2013 started flocking to the suburbs.<\/p>\n<p><a href=\"https:\/\/foxbusiness.com\/economy\/how-housing-is-fueling-searing-hot-inflation\" target=\"_blank\" rel=\"noopener\"><strong>HOW HOUSING IS FUELING RED-HOT INFLATION<\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/08\/931\/523\/HOME-CONSTRUCTION-8.15.22.jpg?ve=1&#038;tl=1\" alt=\"Housing under construction in Kentucky\" \/><\/div>\n<div class=\"caption\">\n<p><span>Houses under construction at the Norton Commons subdivision in Louisville, Kentucky, on July 1, 2022.<\/span><span> (Luke Sharrett\/Bloomberg via \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p>&#8220;Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a <a href=\"https:\/\/foxbusiness.com\/category\/recession\" target=\"_blank\" rel=\"noopener\">housing recession<\/a>,&#8221; NAHB chief economist Robert Dietz said.<\/p>\n<p>August&#8217;s reading was below the median expectations among economists for an unchanged 55.<\/p>\n<p>One of the index&#8217;s components that measures current sales of single-family homes collapsed to 57 from 64. The gauge of single-family sales expectations over the next six months also dropped to 47 from 50, while the prospective buyer traffic index slipped five points to 37 \u2013 deeply in negative territory.\u00a0<\/p>\n<p>The decline was broad-based across the nation, with builder confidence in the West falling by 11 points, followed by a 9-point decline in the Northeast and a 7-point decline in the South. Confidence in the Midwest dropped by 3 points.\u00a0<\/p>\n<p>The interest rate-sensitive housing market has started to cool noticeably in recent months as the <a href=\"https:\/\/foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\"><u>Federal Reserve<\/u><\/a> moves to tighten policy at the fastest pace in three decades. Policymakers already approved a 75-basis point rate increase in both June and July. \u00a0<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/06\/931\/523\/federal-reserve-Getty.jpg?ve=1&#038;tl=1\" alt=\"Federal Reserve\" \/><\/div>\n<div class=\"caption\">\n<p><span>.A man walks past the U.S. Federal Reserve in Washington on April 29, 2020.<\/span><span> (Xinhua\/Liu Jie via \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/foxbusiness.onelink.me\/Zkcx?pid=AppArticleLink&#038;af_dp=foxbusinesssaf%3A%2F%2F&#038;af_web_dp=https%3A%2F%2Fwww.foxbusiness.com%2Fapps-products\" target=\"_blank\" rel=\"noopener\"><strong><u>GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/u><\/strong><\/a><\/p>\n<p>The average rate for a 30-year fixed <a href=\"https:\/\/foxbusiness.com\/category\/home-mortgage\" target=\"_blank\" rel=\"noopener\">rate mortgage<\/a> climbed to 5.22% for the week ending Aug. 11, according to recent data from mortgage lender Freddie Mac. That is significantly higher than just one year ago when rates stood at 2.86%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Empire State Properties founder and president reacts to economist Mark Zandi warning a housing correction is coming on &#8216;Cavuto: Coast to Coast.&#8217; Confidence among builders in the<\/p>\n","protected":false},"author":1,"featured_media":1606847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1606703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1606703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1606703"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1606703\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1606847"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1606703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1606703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1606703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}