US homebuilder confidence rose for the second month in a row in October, but fluctuating mortgage interest rates and lower housing affordability continued to pose resistance. The US NAHB real estate market index rose from 41 in September to 43 in October. The Federal Reserve raised interest rates to a range of 5.25% to 5.50% between 2022 and 2023 to curb high inflation, leading to a slowdown in the real estate market. However, mortgage interest rates had been falling until the rate cut cycle began. The Federal Reserve cut interest rates by 50 basis points last month, exceeding expectations by 25 basis points. NAHB chief economist Robert Dietz said in a statement: “Mortgage interest rates are expected to fall unevenly in the next few quarters, which will improve housing demand, but tight loan conditions for development and construction loans will put pressure on the supply of construction land.”

US homebuilder confidence rose for the second month in a row in October, but fluctuating mortgage interest rates and lower housing affordability continued to pose resistance. The US NAHB real estate market index rose from 41 in September to 43 in October. The Federal Reserve raised interest rates to a range of 5.25% to 5.50% between 2022 and 2023 to curb high inflation, leading to a slowdown in the real estate market. However, mortgage interest rates had been falling until the rate cut cycle began. The Federal Reserve cut interest rates by 50 basis points last month, exceeding expectations by 25 basis points. NAHB chief economist Robert Dietz said in a statement: “Mortgage interest rates are expected to fall unevenly in the next few quarters, which will improve housing demand, but tight loan conditions for development and construction loans will put pressure on the supply of construction land.”