U.S. homebuilder sentiment declined to its lowest point in a year in September, driven by rising mortgage rates, labor shortages linked to immigration enforcement, and increased material costs. These factors have weakened buyer traffic and led to more price cuts and sales incentives, reflecting subdued demand in the housing market. U.S. homebuilder sentiment dropped to a one-year low in September as rising mortgage rates dampen demand for housing, a survey showed on Wednesday. The National Association of Home Builders/Wells Fargo Housing Market index fell three points to 32 this month, the lowest reading since September 2025, from 35 in August. The decline also reflected labor shortages amid an immigration crackdown as well as rising costs because of tariffs on imports. Economists polled by Reuters had forecast the index easing to 34. Sentiment is likely to remain subdued in the months ahead as mortgage rates have been rising in tandem with the 10-year U.S. Treasury yield.

 

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US homebuilder sentiment falls to 12-month low amid rising mortgage rates