Market Flux Event
US Homebuilder Confidence Drops to Lowest Since June 2012 as Mortgage Rates Top 7%
Read this in the Market Flux appUS homebuilder sentiment fell sharply in October, hitting its lowest level since June 2012, as rising mortgage rates and weak demand hammered confidence in the new-home market. The NAHB/Wells Fargo Housing Market Index dropped three points to 29, according to the National Association of Home Builders and Wells Fargo.
Mortgage rates climbing above 7% were a central driver of the decline, squeezing buyer affordability and pushing builders to offer broad concessions to move inventory. A record-high 43% of builders cut prices during the month, with average discounts of 6%, while nearly two-thirds offered additional sales incentives such as rate buydowns or upgrades to attract buyers.
The reading of 29 marks the weakest builder confidence since the housing market was still recovering from the 2008 financial crisis, underscoring how sharply higher borrowing costs have eroded demand for newly built single-family homes.
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Sources
- DeItaoneU.S. HOUSING MARKET CONFIDENCE HITS 14-YEAR LOW U.S. homebuilder sentiment fell to 29 in October, its lowest since June 2012, as mortgage rates climbed above 7%. A record-high 43% of builders cut prices, with average discounts of 6%, while nearly two-thirds offered sales incentives.
- ReutersUS homebuilder sentiment tumbles to near 14-1/2-year low in October
- MikeZaccardiHomebuilder sentiment 14-year low
- WsjU.S. Home-Builder Sentiment Sinks to 14-Year Low
- CnbcHomebuilder sentiment drops in October
- ZerohedgeUS Homebuilder Confidence Crashes To 14 Year Low, Blame Mortgage Rates & Immigration
- NasdaqU.S. Housing Market Index Drops To Fourteen-Year Low In October