Homebuilder Sentiment Rises 3 Points in May to 37 Index Readout

Homebuilder sentiment for single-family homes increased by 3 points to a readout of 37 on the NAHB/Wells Fargo Housing Market Index in May. This rise comes after a sharp decline in April, with economists having expected the index to remain unchanged. Despite this increase, an index score below 50 indicates negative sentiment. The average 30-year fixed mortgage rate currently sits at 6.65%. Additionally, fewer builders are cutting prices, with 32% reporting price reductions in May, down from 36% in April.