US Stock Market: US homebuilder sentiment falls unexpectedly in July; housing stocks may stay under pressure

The NAHB/Wells Fargo US Housing Market Index unexpectedly fell two points to 34 in July from a revised 36 in June, marking the 15th straight month below 40 and missing economist expectations of a steady 35 reading. US homebuilders face continued weak buyer demand due to elevated mortgage rates, stubborn inflation, and renewed US-Iran tensions pushing rates higher, with 37 percent of builders cutting prices and 63 percent offering sales incentives. The weaker sentiment is likely to weigh on US homebuilder stocks such as D.R. Horton, Lennar, PulteGroup, NVR, Toll Brothers and KB Home.