> ## Content Index
> Fetch the complete content index at: https://www.yardeniquicktakes.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Homebuilders' Sentiment  Plummets
- URL: https://www.yardeniquicktakes.com/homebuilders-reporting-less-traffic/
- Published: 2022-07-18T21:56:40.000Z
- Updated: 2022-07-18T21:56:40.000Z
- Author: Ed Yardeni
- Tags: Housing Market, Inflation

The National Association of Home Builders/Wells Fargo Housing Market Index, a survey designed to gauge market conditions, found builder sentiment dropped 12 points to 55 in July. That marked the largest one-month drop in the survey’s 37-year history with the exception of April 2020, when the reading plummeted 42 points to 30 during the pandemic lockdown.

The S&P 500 Homebuilding Index, which is highly correlated with the NAHB index, rose 20% from June 16 through Friday, July 15\. However, the index doesn't bode well for the industry for now (chart). 

The problem is housing affordability fell as the median single-family new home price soared by an astonishing 41.6% over the past 24 months through May (chart). The jump in mortgage rates exacerbated the affordability problem.

Americans are canceling deals to buy homes according to a new report from Redfin. The share of sale agreements on existing homes canceled in June was just under 15% of all homes that went under contract. That's the highest since early 2020 during the lockdown.

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2022/07/capture.jpg)

[View All QuickTakes](https://www.yardeniquicktakes.com/)

[View Our Live Charts](https://www.yardeniquicktakes.com/live-charts/)