Homebuilders' Sentiment Plummets

The National Association of Home Builders/Wells Fargo Housing Market Index, a survey designed to gauge market conditions, found builder sentiment dropped 12 points to 55 in July. That marked the largest one-month drop in the survey’s 37-year history with the exception of April 2020, when the reading plummeted 42 points to 30 during the pandemic lockdown.

The S&P 500 Homebuilding Index, which is highly correlated with the NAHB index, rose 20% from June 16 through Friday, July 15. However, the index doesn't bode well for the industry for now (chart).