Builder sentiment, the split between big and small

The NAHB home builder sentiment index for December was 37 as expected, up from 34 in November and vs 40 in October, 44 in September and 50 in August. There was no change in the Present Situation but a 6 pt rebound in Future Expectations was seen, likely helped by the drop in rates, and comes after a 5 pt drop last month. Prospective Buyers Traffic remains in the doldrums, at 24, but up 3 pts m/o/m after falling by 5 pts in November. It was 40 back in July and the last time it was above 50 was May 2022.

The NAHB did cite the drop in rates as helping future sentiment and lifting a touch the buyer traffic.