The Traffic of Prospective Buyers measure from the National Association of Home Builders (NAHB) collapsed to a two-year low in today’s release as surging mortgage rates have created major affordability challenges. The 30-year mortgage rate has surpassed 6% this week for the first time since 2008 according to some sources, pricing many potential buyers out of this housing market. Thus, the NAHB notes that builders are taking a more cautious approach as they are already seeing lower demand with the spike in mortgage rates. While the drop-off in the Traffic of Prospective Buyers Index is concerning on its own, it is corroborating the warning flag that was given by our InvesTech Housing [Bubble] Barometer earlier this week, both of which indicate that the risk of a meltdown in the housing market is far greater than many expect.
