Homebuilder Sentiment Matches Record Low in June

U.S. home builder sentiment sank in June to match the lowest level on record set in December, an industry group said.

U.S. home builder sentiment sank 1 point in June to match the lowest level on record set in December, an industry group said on Monday.

The National Association of Home Builders said its preliminary NAHB/Wells Fargo Housing Market Index fell to 18 from 19, the same level reached in December and the lowest since the index began in January 1985.

A June reading of 19 was forecast in a Reuters poll of 43 economists.

Readings below 50 indicate more builders view market conditions as poor than favorable.

"None of it is encouraging," David Seiders, NAHB chief economist, said on a conference call.

Seiders said he is worried about rising mortgage rates and expects home sales volume to erode further in coming months as "consumer sentiment took another nose-dive" in early June.

The NAHB said its index of current single-family home sales was unchanged at an all-time low of 17 in June.

Its gauge of home sales over the next six months was unchanged at 28, hovering four points above its record low set in November.

The trade group's index of prospective buyers declined 1 point to 17, also holding four points above its record low reached in December.

Contact Real Estate


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.
  • Diana Olick

    Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

Home prices and supply map

  • Track the latest moves in sales, prices and inventory in some of the largest housing markets across the country.

Latest Special Reports

  • Trading Nation

    Trader Nation is not simply about finding that next trade -- it is a place where traders trade better together.

  • Inside the market's biggest sectors with a look at the trends, companies and trades netting profits for investors.

  • CNBC 'Explains' the complicated economics of our world—from stocks and balance sheets, to trade and public policy.