Builder Confidence Drops, Consumer Credit Defaults Increase – NMP Skip to main content

Builder Confidence Drops, Consumer Credit Defaults Increase

Dec 15, 2015
Builder confidence in newly constructed single-family home market fell one point this month in the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), registering at 61 on the index scale

Builder confidence in newly constructed single-family home market fell one point this month in the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), registering at 61 on the index scale.

All three HMI components recorded drops: thee index measuring sales expectations in the next six months fell two points to 67, while the component gauging current sales conditions decreased one point to 66 and the index charting buyer traffic ticked downwards by two points to 46.

On a regional basis, builder confidence in the West increased three points to 76 and in the Northeast by one point to 50. But builder confidence in the Midwest dropped two points to 58 and by one point in the South to 64.

Still, the NAHB did not see any reason to worry.

“For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” said NAHB Chief Economist David Crowe. “With job creation, economic growth and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.”

While builder confidence was on the decline, consumer credit defaults seesawed up last month, according to the latest S&P/Experian Consumer Credit Default Indices.

The composite rate of consumer credit defaults—encompassing mortgage, bank card and auto loans—reported at 0.97 percent in November, up three basis points (bps) from October. On the mortgage side, the first mortgage default reported in at 0.82 percent, up one basis point from the previous month. Second mortgage default rates rose 11 bps to 0.67 for November.

The report also found more defaults in the bank card sector—a 16 bps spike from October, recording a 2.91 percent for the month of November—and in the auto loan default rate—which rose 1.04 percent, up four basis points for November.

“November was the second consecutive month when default rates rose across all types of consumer credit,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “While two months isn’t long enough to establish a turning point or a new trend, the consumers’ financial condition should be watched going forward.”

About the author
Published
Dec 15, 2015
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026