The National Association of Home Builders reported that home builder sentiment fell in September by three points to 46. According to the index, any number below 50 is considered negative. The sentiment appears to be triggered by market conditions, which are forcing some builders to lower their prices. 
According to the NAHB, this represents the ninth straight month of declines and the lowest level since May of 2014.
Back in January 2022, builder sentiment was at 83, and that was at the same time when interest rates were approximately 3%.
As interest rates rise, and the cost of construction increases, the budgets of potential homebuyers forced to pay-up. Nationally, the 30-year-fixed-rate mortgage crossed 6% this week for the first time in years. Still, home prices continue to rise but not at the accelerated rate they had in 2021. Approximately 25% of home builders indicated that they had lowered home prices in September, up from 19% in August.
Other factors impacting the construction market are higher material costs, higher labor costs, and higher costs for buildable land.
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Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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