U.S. homebuilder confidence fell more than expected in October to its lowest level in 14 years, as higher mortgage rates deterred buyers and builders increasingly cut prices to make sales.
\n\nThe National Association of Home Builders/Wells Fargo Housing Market Index dropped three points to 29, the lowest reading since June 2012, the trade group said Monday. Economists surveyed by Bloomberg and The Wall Street Journal had expected a reading of 31.
\n\nReadings below 50 indicate that more builders view conditions as poor than good. The index measures confidence in the market for newly built single-family homes.
\n\nAll three components declined. The gauge of current sales fell two points to 33, also its lowest since 2012. Expectations for sales over the next six months dropped five points to 32, the weakest reading since November 2022.
\n\nProspective buyer traffic fell five points to 18. That was the lowest since April 2012, excluding the pandemic’s onset in April 2020.
\n\nNAHB Chairman Bill Owens said mortgage rates had climbed well above seven percent in recent weeks, while higher gasoline prices and inflation had further weakened buyer traffic. Builders also face higher costs for construction loans, building materials and diesel, he said.
\n\n“Housing remains squeezed…
Original source: https://www.breitbart.com/economy/
