Homebuilder sentiment is at a 14-year low
United States homebuilder sentiment dropped to a 14-year low in October due to weak sales and rising costs that have left buyers struggling. September housing data reveals a deep freeze in the market, marked by a record low in pending home sales and a steep drop in single-family housing starts. Building permits have likewise slid to a three-and-a-half-year low. Even builder discounts have failed to spark adequate homebuyer interest, leaving residential construction in a broad slowdown.
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- ✓ US homebuilder sentiment dropped to a 14-year low in October.
- ✓ US pending home sales fell to a record low in September as mortgage rates rose.
- ✓ US single-family housing starts plunged and building permits hit a three-and-a-half-year low.
- ✓ Goldman Sachs warns that the US housing market is likely to stay bleak.
What changed
US homebuilder sentiment tumbled to near 14-and-a-half-year lows in October, matching record lows in pending home sales and a plunge in single-family housing starts.
Live updates
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US Homebuilder Sentiment Hits 14-Year Low Amid Slowing Sales
United States homebuilder sentiment dropped to a 14-year low in October due to weak sales and rising costs that have left buyers struggling. September housing data reveals a deep freeze in the market, marked by a record low in pending home sales and a steep drop in single-family housing starts. Building permits have likewise slid to a three-and-a-half-year low. Even builder discounts have failed to spark adequate homebuyer interest, leaving residential construction in a broad slowdown.
Why it matters
The downturn in builder confidence reflects mounting affordability pressures across the broader housing market as mortgage rates remain elevated. Economists and financial institutions warn that the dismal conditions could persist well into future years. This contraction in the residential housing sector signals wider economic strains as the Federal Reserve weighs additional interest rate hikes.
What is confirmed
- US homebuilder sentiment dropped to a 14-year low in October.
- US pending home sales fell to a record low in September as mortgage rates rose.
- US single-family housing starts plunged and building permits hit a three-and-a-half-year low.
- Goldman Sachs warns that the US housing market is likely to stay bleak.
Still unconfirmed
- The US housing market could stay frozen through 2027.
What to watch next
- Federal Reserve interest rate decisions
- Subsequent monthly housing starts and building permits data
- Pending home sales reports for the upcoming months
confidence 95%Sources used for this update (28)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- The Washington Post — Why buying a house feels so painful now — and your parents may not understand
- Forbes — Homebuyer Interest Hits 14-Year Low Despite Builder Discounts
- Bloomberg — US Homebuilder Sentiment Drops to 14-Year Low on Weak Sales
- 247wallst.com — S&P 500 closes at 7,709 as Nasdaq leads a tech-driven rally | 24/7 Wall St.
- Yahoo Finance — Homebuilders haven't felt this bad about the market since 2012
- CNBC — September data shows housing market in a deep freeze
- The Economist — Why Americans have stopped buying new homes
- Yahoo Finance — US pending home sales tumble to record low in September
- CNBC — Housing is flashing warning signs just as the Fed weighs more interest rate hikes
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