Economics

US Homebuilder Sentiment Gauge Falls to Lowest Since May 2020

  • Drop in index was biggest since the start of the pandemic
  • Buyer traffic, sales expectations measures worst in two years
A worker guides a section of a new home as it is lifted into place at a development in Lake Forest, California.

Photographer: Patrick T. Fallon/Bloomberg

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US homebuilder sentiment fell in July to the lowest since May 2020 as inflation and higher interest rates hurt buyer traffic and sales.

The National Association of Home Buyers/Wells Fargo gauge decreased to 55, the lowest level since May 2020, figures showed Monday. The 12-point decline from the prior month was the largest since the start of the pandemic and worse than all estimates in a Bloomberg survey of economists.