Homebuilder Stocks Hit Record High As Homebuilder Confidence Plunges To 8-Month Lows

While homebuilder stocks are hovering near record highs, confidence among homebuilders has tumbled to its lowest since before Trump’s election. As opposed to blaming stagnating wages, or higher rates, the NAHB chooses to blame President Trump’s Canadian Lumber tariffs for making costs unaffordable…

Builder confidence fell two points in July to its lowest reading since November 2016

Present single family sales falls to 70 vs 72 last month

Future single family sales falls to 73 vs 75 last month

Prospective buyers traffic falls to 48 vs 49 last month

But homebuilder stocks love it…

NAHB Chief Economist Robert Dietz said, “builders will need to manage some increasing supply-side costs to keep home prices competitive.”

“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,”said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

“This is hurting housing affordability even as consumer interest in the new-home market remains strong.”

Which is odd because Lumber prices are still below the April 25th levels when Trump invoked the tariff...