Homebuilder Sentiment Drops Again as High Mortgage Rates Deter Buyers

Homebuilder sentiment declines for second straight month as mortgage rates stay above 7% and erode buyer purchasing power.

Nearly one-third of builders reduced prices in September to boost sales, while 59% offered incentives amid waning affordability.

High mortgage rates are taking a toll, with a growing number of buyers electing to defer home purchases until rates move lower.

Builders had been riding high as resale inventory stayed low, pushing more first-time buyers to consider new construction.

Policies to increase housing supply are needed to ease affordability crisis and curb shelter inflation, says NAHB chief economist.