Homebuilder Sentiment Hits Five-Month Low

Homebuilder confidence falters in face of persistently high mortgage rates and construction worker shortages, survey finds.

An aerial view of suburban houses and gardens.
(Image credit: Karl Hendon, Getty Images)

Persistently high mortgage rates of more than 7% have caused homebuilder confidence to drop below the key level of 50 for the first time in five months, according to a new report.

Builder confidence in the market for newly built single-family homes fell five points to 45 in September, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), a monthly survey that asks NAHB members to rate market conditions for new home sales now and six months from now. The five-point decline follows a six-point decline in the August index.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.