US NAHB Housing Market Index much lower than expected

US NAHB Housing Market Index came in 10% lower than expected at 40 vs 44 estimated and 45 previously

As we can read inside the NAHB report: Stubbornly high mortgage rates that have climbed to a 23-year high and have remained above 7% for the past two months continue to take a heavy toll on builder confidence, as sentiment levels have dropped to the lowest point since January 2023 (...) This is the third consecutive monthly drop in builder confidence (...) Since late September, mortgage rates are up nearly 40 basis points to 7.57%'

Chief NAHB Economist Robert Dietz

'The housing affordability crisis can only be solved by adding additional attainable, affordable supply (...) Boosting housing production would help reduce the shelter inflation component that was responsible for more than half of the overall Consumer Price Index increase in September and aid the Fed’s mission to bring inflation back down to 2%. However, uncertainty regarding monetary policy is contributing to affordability challenges in the market.'