With mortgage rates declining by more than one-half of a percentage point from early August through mid-September, per Freddie Mac, builder sentiment edged higher this month even as builders continue to grapple with rising costs. Builder confidence in the market for newly built single-family homes was 41 in September, up two points from a reading of 39 in August, according to the NAHB/Wells Fargo Housing Market Index (HMI). This breaks a string of four consecutive monthly declines. Due to lower interest rates, builders now have a positive view for future new home sales for the first time since May 2024. …All three HMI indices were up in September. The index charting current sales conditions rose one point to 45, the component measuring sales expectations in the next six months increased four points to 53 and the gauge charting traffic of prospective buyers posted a two-point gain to 27.