Home builder confidence limited amid high interest rates

Home builder confidence was stagnant this month as high interest rates continued to quell optimism for 2025, according to the National Association of Homebuilders/Wells Fargo Housing Market Index. .Builder confidence in the market for newly constructed single-family homes was 47 last month, up one point from 46 in November. Any reading above 50 indicates that the majority of builders are confident in the current and near-term outlook for housing..The index for current sales conditions increased three points to 51, while the traffic of prospective buyers rose two points to 33. The index for sales expectations for the next six months to fall six points to 60 amid high interest rates. .Thirty percent of builders reduced home prices this month, remaining within the range of 30 to 33 percent since last July. The average price reduction was 5 percent this month, the same as in December. .Housing numbers were mixed in December, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development. Privately-owned housing units authorized by building permits fell 0.7 percent in December to 1.483 million, 3.1 percent under the December 2023 rate of 1.53 million. Single-family authorizations increased 1.6 percent in December to 992,000 from 976,000 the previous month. .Other December report findings included:.Privately-owned housing starts increased 15.8 percent to nearly 1.5 million from less than 1.3 million in November. Single-family housing starts increased 3.3 percent to 1.05 million from 1.01 million the previous month.Privately-owned housing completions fell nearly 5 percent to 1.544 from 1.621 million in November. Single-family housing completions fell 7.4 percent to 948,000 from 1.024 million the previous month. An estimated 1.62 million housing units were completed last year, up 12.4 percent from 1.44 million in 2023.