More builders are lowering prices for homes as their confidence in the market continues to tumble. Homebuilder sentiment in September fell 3 points to 46 in the National Association of Home Builders/Wells Fargo Housing Market Index. Anything below 50 is considered negative.
That is the ninth straight month of declines and the lowest level since May 2014, except for a short-lived drop at the start of the coronavirus pandemic in 2020. The sentiment was 83 in January of this year when interest rates were about half what they are now.
According to Mortgage News Daily, the average on the 30-year fixed started at around 3 percent and then rose steadily, reaching 6 percent for a few days in June. It then fell back and almost hit 5 percent in August, rising sharply again to over 6 percent this month.
The Federal Reserve, meanwhile, is expected to raise its benchmark rate again this week as inflation remains high.
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