Homebuilder Sentiment in U.S. Drops to Lowest Since October

A contractor installs wall insulation in a home under construction in Park City, Utah.Photographer: George Frey/Bloomberg
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Confidence among U.S. homebuilders dropped to a four-month low in February as higher labor and supply costs, combined with rising interest rates, hurt affordability and the outlook for sales.

A gauge of builder sentiment decreased to 82 from a January reading of 83, National Association of Home Builders/Wells Fargo data showed Tuesday. The figure was in line with the median forecast in a Bloomberg survey of economists.