The NAHB Housing Market Index has declined to record lows.

Elevated mortgage rates exert substantial pressure on builder morale.  

Highlights

• The NAHB Housing Market Index dropped from 40 in October to 34 in November.
• In October, Industrial Production saw a 0.6% month-over-month decrease.
• The SP500 closed around the 4510 mark as traders continue to prioritize a more accommodating approach from the Federal Reserve.  

On November 16, the National Association of Home Builders published the NAHB Housing Market Index report for November. According to the report, the NAHB Housing Market Index decreased from 40 in October to 34 in November, falling short of the analyst consensus of 40.

This marks the fourth consecutive monthly decline in builder confidence as sentiment dropped to its lowest level since December 2022. The National Association of Home Builders stated that "High mortgage rates approaching 8% earlier this month continue to weigh heavily on builder confidence, but recent economic data suggests that housing conditions may improve in the upcoming months."

Today, traders also reviewed the October Industrial Production report, which revealed a 0.6% month-over-month decline. Analysts anticipated a 0.3% decrease in Industrial Production, indicating that the report fell short of analyst expectations.

Following the release of the NAHB Housing Market Index report, the U.S. Dollar Index tested new lows, and Treasury yields decreased, leading to a bearish trend for the American currency.

Gold surpassed the $1980 level as traders focused on a weakened dollar and declining Treasury yields. Traders speculate on a more accommodative stance from the Fed, which is bullish for the gold market.

The SP500 settled near the 4510 level, reflecting a prevailing bullish sentiment as traders anticipate potential rate cuts by the Fed in the first half of next year.