Reducing prices and incentives to attract frequency buyers

The US housing sector indicators have returned to decline, with the confidence of construction companies in August declined to its lowest levels since December 2022, in a new indication of the continued crisis of the ability to bear the costs of housing, despite the slight decline in mortgage rates.

The National Association of Home Builders/WELLS FARGO HOUSING Market Index is that its main index fell to 32 points against 33 points in July, violating the expectations of analysts who were more likely to rise to 34 points. This decline reflects the reality of the difficult market, as it reduced more One third of the construction companies is home prices at an average rate of 5%, while two -thirds of the companies provided various incentives to attract frequency buyers in light of the high interest and economic fog. At the level of the index details, the readings of the current house sales declined, while future sales expectations remained unchanged. As for the potential buyers movement, it has recorded its highest levels since May, but it is still relatively weak compared to historical standards. The biggest obstacle remains, and that buyers are waiting for a decline in mortgage rates to take the decision to buy, ”adding that the builders also face challenges related to the organizational policies that hinder the development of land. The economists of the association, Robert Dietz stressed that the weak market data enhances the need for the federal reserve to reduce interest rates next month, which will reduce the costs of financing for the construction sector and pressure the mortgage rates Towards further decline. Indeed, the rate of interest on the firm mortgage decreased for 30 years last week to 6.58%, which is the lowest level since last October, after losing about half a percentage point since the beginning of 2025. The perpetrators’ confidence has declined after the June data, which showed the decline in building new houses to the lowest level in 11 months, and the decrease in building permits to the lowest level in more than two years. It is expected that the data is expected July, scheduled to be issued on Tuesday, is weak, which puts the market in a cautious awaiting state of the upcoming federal decisions, especially with the continued impact of prices on the purchasing power of American families.