Builder confidence drops as mortgage rates surge, stifling housing demand

Builder confidence declined in August for the first time in 2022 due to rising mortgage rates and high prices.
Mortgage rates have remained elevated, approaching 7% and dampening buyer demand.
Limited inventory of existing homes initially pushed buyers towards new construction.
Labor shortages, high construction costs, and limited lots added to builders' woes.
To attract buyers, builders are using more sales incentives like buying down interest rates.