GS Housing Market Activity Scale Week of August 30 Scale Up 1 Sequentially Led Purchase Applications as Rates Reach New 52...

Equity Research 8 September 2026 | 12:01AM EDT

GS HOUSING MARKET ACTIVITY SCALE

Week of August 30: Scale Up 1% Sequentially Led Purchase Applications as Rates Reach New 52-Week High

Sequential Gain Led by Purchase Apps Susan Maklari Exhibit 1: GS Housing Activity Weekly Scale | Holds at 4 While Sales Decline: For the week of Goldman Sachs & Co. LLC Week of 08/30/26 August 30, the index rose 1% Charles Perron-Piche, CFA sequentially and 2% YOY, putting it 23% | charles.perron- below the long-term average. The Goldman Sachs & Co. LLC

sequential move was led by a 2% Rhea Bhatia | increase in purchase applications along Goldman Sachs India SPL

with an improvement in median listing Galilee Best | and sale price while active listings fell Goldman Sachs & Co. LLC 1% vs last week. These positives were partially offset by a 4% decline in sales as the mortgage rate rose 5bps to a new Source: Goldman Sachs Global Investment Research 52-week high of 6.71%. We note the recent volatility in readings is consistent with the broader macro and our channel checks that suggest weak activity into the end of summer. Given the setup, we are focused on names with company-specific initiatives, including the potential for capital allocation, and highlight Buy-rated IBP. Should conditions for the builders improve, we see the greatest upside to MTH and DHI given their exposure to the entry-level along with a disciplined approach to balancing margins and uses of cash. How it Works: In developing the scale, we went back over 50 years of data to determine averages, outliers, and differing operating environments. As such, a reading of 5 is in line with historical norms while a 0 represents the weakest market we have seen—outside of the financial crisis—in March 1982. Given the magnitude of the run-up in housing, the mid-2000s read greater than 10, while the depths of the financial crisis were below 0. This reflects our view that the activity seen then is unlikely to reoccur given economic and industry-specific dynamics including labor, supply chains, and company-specific strategies.

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Goldman Sachs GS Housing Market Activity Scale

Exhibit 2: Scale Holds at 4 for Week of August 30 10

Weekly Scale Monthly Scale LT Average

Source: Goldman Sachs Global Investment Research

Exhibit 3: Monthly Scale at 4 for July

Source: Goldman Sachs Global Investment Research