U.S. homebuilders are feeling pessimistic about their business for the first time in seven months, thanks to stubbornly high mortgage rates.
Builder confidence in the single-family housing market fell 5 points in September to 45 on the National Association of Home Builders/Wells Fargo Housing Market Index. The decrease follows a 6-point drop in August. Anything below 50 is considered negative.
The index’s three components all declined. Current sales conditions fell 6 points to 51, and sales expectations in the next six months also dropped 6 points to 49. Buyer traffic decreased 5 points to 30.
Builders cite weaker affordability due to higher mortgage rates. The average rate on the popular…