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The US housing market is likely close to hitting a bottom following months of plummeting buyer demand and falling home prices, a prominent economist said in a note to clients this week.

Homebuilder confidence fell for the 11th straight month in November and plunged to its lowest level since June 2012, excluding the COVID-19 pandemic, according to the National Association of Home Builders’ monthly survey.

Sentiment in the housing sector has fallen rapidly during this year’s massive surge in mortgage rates – which topped 7% for a 30-year fixed-rate loan earlier this month before receding to 6.61% last week. Ian Shepherdson, chief economist at Pantheon Macroeconomics, argued that mortgage rates appear to have stabilized — a welcome sign for homebuilders and buyers alike.