NAHB

While the lock-in effect on existing supply has helped drive consumer interest in new construction, first-time buyers have been taking a greater share of that inventory.

Construction activity in smaller cities also saw a significant annual decline, according to the National Association of Home Builders.

The decline in loan activity and softening prices also helped drive down builder sentiment for the 11th month in a row.

Consumer demands for lower density and more affordable prices fueled a larger share of construction outside urban cores, but recent trends have led to slowdowns across the board.

Despite some moderation in overall supply prices, concrete products are running consistently higher.

New single-family home mortgage applications, housing starts and industry sentiment all came in at their lowest since 2020.

The slowdown in new single-family construction is one of several headwinds homebuilders find themselves facing this summer.

The availability of some loans used to build homes dried up due to the coronavirus. Opening up the economy may help if it doesn't lead to a spike in infections, and if consumer demand persists.

As lawmakers tackle Fannie Mae and Freddie Mac, any revamp must lessen risk to the mortgage system and U.S. taxpayers.

The recently enacted tax reform bill is likely to encourage more consumers to rent instead of buy and tamp down the rapid rise in home prices.