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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
Toll Brothers Inc. Homes As Construction Spending Figures Slightly Up
Photographer: Daniel Acker/Bloomberg
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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.