“The NAHB housing market, a gauge of homebuilder confidence, tumbled to 46 in February. This was the biggest fall on record. Economists polled by Bloomberg were looking for homebuilder confidence to hold steady at 56.”
Mortgage market volume reductions have been dramatic and rapid. Besides business cycle considerations, prevailing mortgage rates are the biggest factors to consider when evaluating sales levels. Rising yields have impacted housing activity negatively.
Looking at history, the NAHB index has a habit of over-exuberance during rebounds.