Homebuyers are canceling contracts at a rate not seen since 2020 when COVID arrived:
Price drops are next. pic.twitter.com/d884FbOGmk
— QE Infinity (@StealthQE4) October 20, 2026
US homebuilder sentiment tumbles to near 14-1/2-year low in October
WASHINGTON, Oct 19 (Reuters) – US homebuilder sentiment plunged to the lowest level in nearly 14-1/2 years in October as the Middle East conflict boosted mortgage rates and prices of energy-related building materials, a survey showed on Monday.
The National Association of Home Builders/Wells Fargo Housing Market index dropped three points to 29 this month, the lowest level since June 2012. 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 dipping to 31.
Mortgage rates have surged in recent weeks, with the 30-year fixed rate averaging 7.40% last week, the highest level in nearly three years, data from mortgage finance firm Freddie Mac showed. The higher borrowing costs, which are tracking Treasury yields as the US-Israeli war with Iran fans inflation, are depressing home sales.
Housing market ‘frozen’ by high rates.
WASHINGTON, Oct 19 (Reuters) – US homebuilder sentiment plunged to the lowest level in nearly 14-1/2 years in October as the Middle East conflict boosted mortgage rates and prices of energy-related building materials, a survey showed on Monday.
The National Association of Home Builders/Wells Fargo Housing Market index dropped three points to 29 this month, the lowest level since June 2012. 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 dipping to 31.
Mortgage rates have surged in recent weeks, with the 30-year fixed rate averaging 7.40% last week, the highest level in nearly three years, data from mortgage finance firm Freddie Mac showed. The higher borrowing costs, which are tracking Treasury yields as the US-Israeli war with Iran fans inflation, are depressing home sales.
Bank of America market strategists reiterated their forecast today for a Federal Reserve interest rate hike later this month, citing sticky service sector inflation data and stubborn wage metrics. The projection coincided with U.S. Census Bureau data showing national housing starts falling to their second lowest monthly level since May 2020.
The rate hike expectation follows the Labor Department October 15 inflation report, which showed core Consumer Price Index gains holding at 3.7% annually. Fixed income markets responded as 10-year Treasury yields climbed back above 5.2%, increasing borrowing costs across corporate credit and residential mortgages.
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