U.S. homebuilder sentiment hits its lowest level since 2012

U.S. homebuilder sentiment fell to 29 in October, down from 32 in September and below the expected 31. That is the lowest reading since June 2012, as mortgage rates stayed above 7% and new-home demand weakened.

Builders are cutting prices and adding incentives to keep sales moving. A record 43% reduced prices, with average discounts of 6%, while nearly two-thirds offered buyer incentives. Construction costs also rose across energy, materials, labor, lots and policy pressures.