Builder sentiment slumps as mortgage rates continue to stall new home sales

Builder sentiment in Canada remains low, with the Canadian Home Builders’ Association (CHBA) reporting a decline in the Housing Market Index (HMI) for both single-family and multi-family homes. Despite some recovery in the resale market, new home sales are stalling due to high mortgage rates affecting affordability. The CHBA emphasizes the need for policy changes to improve housing supply and affordability, particularly in British Columbia and Ontario, where builder sentiment is notably pessimistic. A federal policy change in December may provide some relief for first-time homebuyers.