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

US homebuilder sentiment unexpectedly weakened in July, falling two points to 34. Elevated mortgage rates and economic uncertainty continue to weigh on housing demand. Builders are increasingly relying on discounts and incentives to boost their sales. A recently enacted housing affordability law aims to increase housing supply. This weaker sentiment could weigh on US homebuilder stocks.