US homebuilder sentiment falls to weakest in 3 years

Bloomberg

Sentiment among US homebuilders fell in December to the lowest level since 2015, missing all forecasts and signaling that the industry’s struggles are intensifying amid elevated prices and higher borrowing costs.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped to 56 from 60 in the prior month amid broad-based declines across sales, expectations and buyer traffic, data showed. The median estimate in Bloomberg’s survey had called for it to hold at 60. With November’s eight-point decrease, it was the biggest two-month decline since October 2001.
The waning optimism among builders underscores concern that housing — an industry that’s sensitive to borrowing costs — is at risk of slipping into a more pronounced slowdown. The Federal Reserve is widely projected to raise interest rates this week for the fourth time in 2018; borrowing costs recently hit a seven-year high after years of strong
property-price gains.