Homebuilder Sentiment Drops Again as High Mortgage Rates Deter Buyers
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Homebuilder sentiment declines for second straight month as mortgage rates stay above 7% and erode buyer purchasing power.
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Nearly one-third of builders reduced prices in September to boost sales, while 59% offered incentives amid waning affordability.
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High mortgage rates are taking a toll, with a growing number of buyers electing to defer home purchases until rates move lower.
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Builders had been riding high as resale inventory stayed low, pushing more first-time buyers to consider new construction.
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Policies to increase housing supply are needed to ease affordability crisis and curb shelter inflation, says NAHB chief economist.