- Prior month 47
- NAHB housing market index 42 versus 47 estimate
- Current single-family home sales 46 versus 50 in January (revised from 51)
- Index of prospective buyers 29 versus revised 32 in January (was previously 33)
- Sales expectations in the next six months plunged -13 points to 46
The latest HMI survey also revealed that
- 26% of builders cut home prices in February, down from 30% in January and the lowest share since May 2024.
- The average price reduction was 5% in February, the same rate as the previous month.
- The use of sales incentives was 59% in February, down from 61% in January.
Regionally indices were lower led by a sharp fall in the Northeast. The West index is at its lowest level going back to at least January 2024. The prior below was 37 in May, July, and August 2024:
- Northeast 48 versus 65 last month
- Midwest 43 versus 44 last month
- South 42 versus 47 last month
- West 35 versus 42 last month
Weakness in housing is starting to gather a little more momentum. Treasury Secretary Bessent said last week that the Trump administration is focused on bringing down the 10 year treasury yield. That yield is instrumental in the setting of the mortgage rates.
Looking at the trends in the mortgage rates they are near the highs over the last year.