U.S. Homebuilder Sentiment Falls to 12-Month Low

U.S. homebuilder confidence fell three points to 32 in September, its lowest level in a year, as rising mortgage rates weakened buyer demand. The NAHB/Wells Fargo Housing Market Index showed current sales conditions declining to 35 and future sales expectations dropping to 37, while prospective buyer traffic remained low at 23. The average 30-year fixed mortgage rate reached 6.76%, with the 10-year Treasury yield also elevated, pushing many potential buyers to the sidelines alongside still-high home prices. Builders cited labor shortages, higher material, fuel and tariff-related costs, and an overhang of unsold new homes as additional pressures. Thirty-eight percent of builders cut prices, up from 35% in August, though the average reduction remained 6%.