July business inventories comes in as expected while September homebuilder sentiment stays negative

Economic Data Summary - Business inventories for July increased by 0.2%, matching the final June read [1] - The yield curve has steepened, with two-year note yields down by approximately three basis points, while 10-year yields remain stable [2] Housing Market Insights - Homebuilder sentiment in September remained unchanged at 32 on the NAHB index, which is below the neutral level of 50, indicating negative sentiment [2][3] - The index has been in a low range since May, with a previous reading of 41 in September of the previous year [3] - Builders are optimistic about lower mortgage rates potentially increasing buyer activity, with the average 30-year fixed mortgage rate dropping to 6.25% [3] - NAHB's chief economist anticipates a federal funds rate cut, which could lower interest rates for builders and developers [4] - Current sales conditions remained at 34, while buyer traffic decreased to 21, and future sales expectations rose to 45, the highest since March [4] - 39% of builders reported cutting prices in September, an increase from 37% in August, marking the highest percentage in the post-COVID period [5]