US Homebuilder Sentiment Drops to Five-Month Low on Higher Rates

  • NAHB/Wells Fargo index slid 5 points in September to 45
  • Share of builders offering buyer incentives at four-month high

A worker builds a home in Lillington, North Carolina, US.

Photographer: Allison Joyce/Bloomberg
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US homebuilder sentiment fell to a five-month low in September as higher mortgage rates continued to push many prospective buyers out of the market.

The National Association of Home Builders/Wells Fargo gauge declined 5 points to 45 after sliding 6 points a month earlier. That marked the largest back-to-back decrease in nearly a year. The September reading was below all estimates in a Bloomberg survey of economists.