Homebuilder Stocks Drop as Buyers Hesitate on High Mortgage Rates

• Homebuilder stocks fell as housing sentiment index broke 4-month streak amid high mortgage rates

• Index stayed at 51 in April, unchanged from March; still indicates more builders view conditions as good

• Buyers hesitating on demand growth until they can better gauge interest rate direction

• Mortgage rates have stayed slightly higher in 2023, pushing some borrowers to sidelines

• Builders pulled back slightly on cutting home prices in April; use of sales incentives also ticked down