Current sales conditions decreased from 50 in January to 46 in February, while sales expectations in the next six months declined from 59 to 46. Traffic of prospective buyers declined from 32 to 29.
The report showed that 26% of builders cut prices in February, compared to 30% in January. The average price reduction was 5%, in line with the previous month.
The National Association of Home Builders commented: “While builders hold out hope for pro-development policies, particularly for regulatory reform, policy uncertainty and cost factors created a reset for 2025 expectations in the most recent Housing Market Index.”
Uncertainty over tariff policy served as the key catalyst, as 32% of appliances and 30% of softwood lumber come from international trade.
U.S. Dollar Index moved lower as traders reacted to the weaker-than-expected NAHB Housing Market Index report. Currently, U.S. Dollar Index is trying to settle below the 106.90 level.
Gold tested new highs near the $2930 level after the release of the report. Gold traders ignore rising Treasury yields and focus on strong demand from central banks.
