US homebuilder sentiment fell to a nine-month low in October, the latest indication of the toll on residential real estate from soaring mortgage rates and
The National Association of Home Builders/Wells Fargo gauge slid 4 points to 40 this month, marking a third-straight decline. The reading was weaker than all but one economist's forecast in a Bloomberg survey, which had a median projection of 44.
Sentiment and sales have been under pressure for much of the past year because of rising mortgage rates and high home prices. Though many prospective buyers have
"Builders have reported lower levels of buyer traffic, as some buyers, particularly younger ones, are priced out of the market because of higher interest rates," Alicia Huey, NAHB chair, said in a statement.
"Higher rates are also increasing the cost and availability of builder development and construction loans, which harms supply and contributes to lower housing affordability," Huey said.
Measures of current and expected sales, as well as a gauge of prospective buyer traffic, also dropped to their lowest levels since the start of the year. Builder sentiment in all four major US regions declined from a month earlier.
In order to get buyers to close deals in the current high interest-rate environment,
With Federal Reserve officials signaling they are likely to keep borrowing costs elevated for longer, mortgage rates also risk staying high.
--With assistance from Jordan Yadoo.
