October homebuilder sentiment +5 points to 37 vs. +1 point estimated

Core Insights - Builder sentiment in the single-family housing market increased by five points to a level of 37 in October, surpassing market expectations of a one-point gain [1][2] - This October reading is the highest since April, attributed to a slight drop in mortgage rates and actions by the Federal Reserve [2] - Builders anticipate a slightly improving sales environment due to expected further easing by the Fed, although persistent supply-side cost factors remain a challenge [2] Market Indicators - The component measuring future sales expectations rose by nine points to 54, crossing the 50-point mark for positivity for the first time since January [3] - Despite the positive outlook, builders are facing ongoing challenges, including the need to cut prices [3] - The expectation is that September census housing construction data will not be released due to ongoing government shutdowns [3]