Homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of February, according to a report released by the National Association of Home Builders on Tuesday.
The report said the NAHB/Wells Fargo Housing Market Index slumped to 42 in February after inching up to 47 in January.
The unexpected decrease by the housing market index partly reflected a steep drop by the component measuring sales expectations in the next six months, which plunged to 46 in February from 59 in January.
The index gauging current sales conditions also fell to 46 in February from 50 in January, while the gauge charting traffic of prospective buyers dipped to 29 in February from 32 in January.
The latest HMI survey also revealed that 26 percent of builders cut home prices in February, down from 30 percent in January and the lowest share since May 2024. Meanwhile, the average price reduction was 5 percent in February, the same rate as the previous month.