According to Jinshi Data, U.S. homebuilder confidence rose for the second consecutive month in October, with the NAHB Housing Market Index rising from 41 in September to 43 in October. However, volatile mortgage rates and lower housing affordability continue to pose resistance.

The Fed raised interest rates to a range of 5.25% to 5.50% between 2022 and 2023 to curb high inflation, which has led to a slowdown in the housing market. The Fed cut interest rates by 50 basis points last month, more than expected by 25 basis points.

NAHB Chief Economist Robert Dietz said mortgage rates are expected to fall unevenly in coming quarters, which will improve housing demand but put pressure on the supply of building sites due to tight lending conditions for development and construction loans.