US Homebuilder Sentiment Plunges to Lowest Level Since June 2012 in October

U.S. homebuilder confidence deteriorated sharply in October, with the NAHB/Wells Fargo Housing Market Index falling three points to 29, its lowest level since June 2012. Worsening affordability, rising supply-side expenses, and 30-year fixed mortgage rates averaging 7.40% have suppressed demand, sending prospective buyer traffic down five points to 18. Facing mounting unsold inventories, 43% of builders slashed prices—the highest share since 2020—with discounts averaging 6% for the seventh straight month, while 65% offered sales incentives to attract buyers.