Homebuilders are lowering home prices as their confidence in the market continues to dip, according to CNBC.
What’s going on: “Homebuilder sentiment in September fell 3 points to 46” in the index, CNBC reports. “Anything below 50 is considered negative.”
- “That is the ninth straight month of declines and the lowest level since May of 2014, with the exception of a short-lived drop at the start of the coronavirus pandemic in 2020.”
Why it’s happening: Rising interest rates and higher materials costs are the cause of the decline in sentiment, according to the NAHB.
Some good news: As market signals point to a coming peak in inflation, “long-term interest rates have stabilized, which will provide some stability for the demand-side of the market in the coming months,” according to the NAHB release.