Homebuilder Sentiment Reaches 10-Month High Amid Limited Housing Supply

Homebuilder sentiment in the US housing market rose to its highest level since July, as declining mortgage rates and limited inventory helped drive demand higher for new homes. The National Association of Home Builders/Wells Fargo Housing Market Index rose five points to 50, marking the first time in nearly a year that the index pulled out of negative territory. The interest rate-sensitive housing market has borne the brunt of the Federal Reserve's aggressive campaign to tighten policy and slow the economy. Limited inventory has also bolstered demand this month, and new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.