The National Association of Home Builders (NAHB) Housing Market Index fell five points to 45 in September, pushing builder sentiment below the key breakeven level of 50 for the first time since April. All three components of the index declined, with current and future sales expectations down six points to 51 and 49 respectively, and buyer traffic falling five points to 30.    

What’s the bottom line? Rising mortgage rates, a lack of workers and buildable lots, and ongoing shortages of distribution transformers (which are crucial for converting voltage in transformer lines to appropriate household levels) were key reasons cited for declining confidence among builders. But there was a positive takeaway for potential buyers – 32% of builders reported cutting prices, the largest share since last December.