Economics
U.S. Homebuilder Index Drops by Most Since '14 as Rates Rise
- NAHB Index declines to lowest level since August 2016
- Homebuilders flag that it could be warning sign for economy
This article is for subscribers only.
Confidence among U.S. homebuilders plummeted by the most since 2014 as the highest borrowing costs in eight years restrain demand, adding to signs of a cooling housing market that will weigh on the Federal Reserve’s debate over how far to raise interest rates.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped eight points in November to 60, the lowest level since August 2016, according to a report Monday. That compared with the median estimate of economists for a one-point drop to 67.