"Homebuilder Sentiment Hits Seven-Month Low Amid High Mortgage Rates"

Homebuilder sentiment has dropped to its lowest level since December due to persistently high mortgage rates, with the NAHB/Wells Fargo Housing Market Index falling to 42 in July. High borrowing costs have deterred both buyers and sellers, leading to a six-month low in new-home sales. However, easing inflation may prompt the Federal Reserve to cut interest rates by the end of the year, potentially improving conditions for home buyers and builders. Despite the challenges, sales expectations for the next six months have slightly improved.