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US Homebuilder Sentiment Falls For Ninth Straight Month

Figures revealed on Monday shows that the National Association of Home Buyers/Wells Fargo gauge of homebuilder sentiment decreased by three points to 46. This is the ninth consecutive month that homebuilder sentiment has declined—a record streak of declines since the data was first released in 1985.

This result comes as mortgage rates continue to climb, thereby extending the housing market’s decline. In an effort to suppress continually rising inflation, the Federal Reserve is looking to hike interest rates by another 75 points. Mortgage rates increased by 6% last week, thereby sustaining this streak.

NAHB Chief Economist Robert Dietz remained optimistic about a housing market turnaround in the near future, explaining, “The housing recession shows no signs of abating as builders continue to grapple with elevated construction costs and an aggressive monetary policy from the Federal Reserve.”

In September, both current and future sales of family homes dropped to their lowest levels since May 2020, while buyer traffic has also reached a new record low for the period. The West of the United States posted the largest decline in sentiment, followed by the South. The Midwest and Northeast both showed no signs of sentiment changes.

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