Market strategists and analysts have started calling out a bottom and an inflection higher with the slowdown in the October producer and consumer price inflation data. An analyst, however, thinks it is too early for a party.
What Happened: The National Association of Home Builders, or NAHB, released the housing market index for November on Wednesday. The index, a measure of confidence in the market for newly-built single-family homes, fell for the 11th straight month in November. Following a five-point decline, the index is now at 33, marking the lowest reading since June 2012.
“Higher interest rates have significantly weakened demand for new homes as buyer traffic is becoming increasingly scarce,” said NAHB Chairman Jerry Konter. He called upon the Biden administration to undertake policy measures to lower the cost of building and allow the nation’s home builders to expand housing production.
See Also: Is The Housing Market Crashing? What Home Depot Says Is Happening Across The US
Why It's Important: “A new bull market doesn’t begin until this data stops going down,” said Michael Kantro, chief investment strategist at Piper Sandler.
A new bull market doesn’t begin until this data stops going down. The NAHB is the start of the #HOPE cycle, a great leading indicator of employment (with a lag), and has collapsed in 2022 at a record pace. #macro $SPY pic.twitter.com/E2rsS7HXWF
Price Action: In premarket trading on Thursday, the SPDR S&P 500 ETF Trust SPY slipped 0.60% to $393.06, according to Benzinga Pro data.
Read Next: Best Companies To Invest In
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
