Lack of Progress on Inflation Pushes Homebuilder Sentiment Back Into Negative Territory

Lack of Progress on Inflation Pushes Homebuilder Sentiment Back Into Negative Territory


Higher mortgage rates are taking a toll on homebuilders in May.

U.S. homebuilder sentiment declined for the first time in six months as mortgage rates jumped above seven percent, the National Association of Home Builders (NAHB) said Wednesday.

The NAHB/Wells Fargo Housing Market Index, a key measure of housing market conditions, dropped by 6 points to 45, its lowest level since the beginning of the year.

Economists had expected the index to hold steady at the prior month’s reading of 51. In March, the gauge climbed just above the 50 threshold that marks the difference between negative and positive sentiment for the sector. It was unchanged from that level in April.

The index tracking builders’ sales expectations for the next six

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