Confidence among builders in the U.S. housing market unexpectedly plunged in September for the second straight month as a spike in mortgage rates continued to weigh on consumer demand for new homes.

The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, fell five points to 45, the lowest reading since April 2023. 

Any reading below 50 is considered negative. 

"High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower," said Robert Dietz, chief economist at NAHB.

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