US homebuilder sentiment drops to 12-month low in September
XHB•Homebuilder sentiment falls to one-year low
WASHINGTON, Sept. 16 (Reuters) - 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.
Mortgage rates and Treasury yields keep rising
The 30-year fixed mortgage rate averaged 6.76% last week, the highest level in more than a year, up from 6.71% in the prior week, data from mortgage finance firm Freddie Mac showed.
