Retail sales data shows that consumers continued to spend on household priorities in August, according to National Retail Federation.

The U.S. Bureau of Labor Statistics reports a 0.3% decrease in import prices for August, the largest monthly drop since December 2023. Despite the August decline, import prices have increased 0.8% over the past year, reflecting ongoing economic fluctuations.

NAHB Chief Economist Robert Dietz said buyer interest and builder sentiment should improve in the months ahead. 

High interest rates for construction and development loans as well as ongoing challenges regarding labor shortages and higher prices for many building materials continued to slow the building market this summer.

Consumer prices rose 2.9% in the 12 months through July, the smallest 12-month increase since March 2021, the Labor Department reported in its consumer price index.

Luxury home values have risen 3.9% year over year, outpacing the 3.2% growth of typical homes.

The Dodge Momentum Index (DMI), issued by Dodge Construction Network, increased by 10.4% in June to 198.6 (2000=100) from the revised May reading of 179.9. Over the month, commercial planning increased 14.5% and institutional planning ticked up 0.2%.   

Existing-home sales fell in June as the median sales price climbed to the highest price ever recorded for the second consecutive month, according to the National Association of Realtors. All four major U.S. regions posted sales declines.

Mortgage rates that averaged 7.06% in May per Freddie Mac, the highest monthly average since last November, put a damper on new home sales last month.

Persistently high mortgage rates are keeping many prospective buyers on the sidelines, and home builders are also dealing with higher rates for construction and development loans, chronic labor shortages and a dearth of buildable lots.