Homebuilder Sentiment Falls to Lowest Level Since 2012 as Mortgage Rates Hold Near 7.4%

The NAHB homebuilder sentiment index fell three points to 29, its lowest reading since June 2012, as high borrowing costs continue to weigh on housing demand.

Freddie Mac reported that the average 30-year mortgage rate was 7.40% last week, keeping affordability stretched for buyers.

Persistent inflation and elevated Treasury yields are the main headwinds. Rate-sensitive areas such as housing and real estate investment trusts remain sensitive to any shift in Federal Reserve expectations.