The chill in the US property market has not dissipated, and builder confidence has fallen to a low point during the year for two consecutive months

The Zhitong Finance App learned that due to factors such as high mortgage interest rates and rising land and construction material costs, US homebuilders' confidence declined for the second month in a row and fell to its lowest level this year. At the same time, the number of existing housing contracts in the US also declined markedly in June, indicating that high housing costs continue to suppress demand in the real estate market.

According to data released by the National Association of Home Builders (NAHB) and Wells Fargo Bank on Thursday, the homebuilder confidence index fell 2 points to 34 in July, lower than market expectations of 35.

The index below 50 means that there are more builders who think the market is in poor condition than those that think it is in good condition. Since last year, the index has been below 40 for 15 consecutive months, the longest since 2012.

NAHB chief economist Robert Dietz said housing affordability remains the top challenge facing the residential construction industry. High mortgage interest rates, high land prices, rising costs of construction materials, and a continuing shortage of skilled workers are putting pressure on the market.

Another data released on Thursday showed that the US sales index for existing housing contracts fell 5.4% month-on-month to 72.5 in June, which is significantly weaker than the 0.5% decline expected by economists, further reflecting the fact that demand for home purchases is still weak.

In recent years, interest rates on 30-year US mortgages have remained above 6% for a long time. Combined with the situation in the Middle East, uncertainty about tariff policies, and uncertain job market prospects, new home sales have continued to be under pressure since this year.

Judging from the sub-indicators, the current sales situation, future sales expectations, and number of potential buyers visited in the July Builder Confidence Index all declined.

In order to attract buyers, more and more builders are having to provide preferential measures, but this also reduces profit margins and weakens the will of enterprises to continue construction. According to the data, 63% of builders said they were providing sales incentives in July, up from 62% in June; another 37% said they had lowered housing prices, up from 35% last month.

From a regional perspective, the northeastern US builder confidence declined most significantly. The index fell 9 points to 41, the biggest drop since November last year. After a sharp decline in June, the southern region remained unchanged this month; confidence continued to decline in the western region, while the Midwest picked up slightly.

The US federal government will release data on new housing starts and residential construction permits for June on Friday. The market will further observe the impact of high interest rates and the high cost environment on housing supply.