After a hitting the highest level since 1999 back in December, Homebuilder sentiment dropped for the third straight month in March, falling from a downwardly revised level of 71 down to 70. A decline is a decline, but any reading in homebuilder sentiment that still has a 7-handle is quite impressive.
The table below shows the breakdown of present and future sales, traffic, and sentiment by region. Traffic saw quite a large downtick and is currently just barely above 50, which could be due to higher interest rates shrinking the pool of prospective buyers. On a regional basis, the only region of the country where sentiment declined, however, was in the Midwest. In the South region, homebuilder sentiment is actually just below the highest levels of the economic expansion.