Shares of major homebuilders are facing downward pressure as the housing market shows signs of cooling. Investors are growing increasingly concerned about the impact of rising interest rates and a potential slowdown in demand on the sector’s profitability.

Several leading homebuilder stocks experienced notable declines in recent trading. The decrease reflects broader anxieties about the future performance of the housing market and its effect on the financial health of these companies.

Analysts suggest that the combination of higher borrowing costs and moderating home price appreciation is contributing to the cautious outlook for homebuilder stocks. The market is closely watching upcoming housing data for further indications of the sector’s trajectory.