U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

In February, sentiment among single-family homebuilders in the nation dropped to the lowest level in five months due to concerns over tariffs raising costs significantly, as reflected by the National Association of Home Builders’ Housing Market Index declining 5 points to 42, below the negative threshold of 50. Current sales conditions fell to 46, buyer traffic to 29, and sales expectations in the next six months to 46, with builders facing elevated mortgage rates and higher home prices, leading to a drop in builder sentiment right before the crucial spring market, potentially resulting in even less supply in the market.

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