Homebuilder confidence falls to 14-year low amid soaring mortgage rates
U.S. homebuilder sentiment dropped to 29 in October, its lowest since 2012, as borrowing costs stayed near 7.5%. September housing starts also slipped to 1.221 million on a seasonally adjusted annual rate.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
What happened
U.S. homebuilder confidence fell to 29 in October, a 14-year low, as mortgage rates soared. Builder sentiment dropped to levels last seen in 2012. September housing starts fell to 1.221 million on a seasonally adjusted annual rate, while rates stayed near 7.5%.
Why it matters
Elevated rates have made it harder to build more homes in America, and housing affordability is expected to get worse, according to the reports.
Timeline
- Oct 19, 10:52 AM ET: U.S. homebuilder confidence dropped to 29 in October, a 14-year low, due to soaring mortgage rates.
- Oct 20, 11:57 AM ET: Builder sentiment was reported to have fallen to levels last seen in 2012, as September starts dropped to 1.221 million SAAR.
Coverage
- Housing is grim for builders, buyers, and homeowners right now (Axios)
- Elevated rates just made it harder to build more homes in America (housingwire.com)
- Builder confidence plunges as rate shock, costs squeeze margins (HousingWire Automation)
- Homebuilder Confidence Plunges to 14-Year Low as Mortgage Rates Soar (Yahoo News)
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