U.S. homebuilder sentiment dropped to a seven-month low in March as tariffs on imported materials raised construction costs, a survey showed on Monday.

Builders continue to face elevated building material costs that are exacerbated by tariff issues,” says National Association of Home Builders.

The foundation of the US housing market appears to be cracking, as homebuilder sentiment plummeted to a seven-month low in March, signaling growing concerns about rising construction costs and economic uncertainty.