By NAHB NOW
While the housing market is showing signs of stabilizing after a period of cooling, housing affordability will decrease in the quarters ahead. Home prices are up more than 30%, on average nationwide since the start of 2020. And interest rates will rise as the Federal Reserve tightens monetary policy.
Indeed, the 10-year Treasury rate has increased 37 basis points since the start of August. And consumer confidence declined to a seven-month low in September because of virus and inflation concerns. The prospect of higher taxes is certainly having a negative impact as well.
Recent housing market data, however, have shown stability. The NAHB/Wells Fargo Housing Market Index (HMI) increased one point in September, rising to a level of 76. The index is off a data series high of 90 from last November.
