U.S. new-home construction rebounded in November to the best pace since August while permits rose to a seven-month high, a sign homebuilding is potentially stabilizing even as higher prices and borrowing costs pose headwinds.

Sentiment among U.S. homebuilders fell in December to the lowest level since 2015, missing all forecasts and signaling that the industry’s struggles are intensifying amid elevated prices and higher borrowing costs.

U.S. home construction improved 1.5% in October, but in a troubling sign, groundbreakings for single-family houses fell.

A rebound in homebuilders’ confidence to a five-month high indicates concern over fallout from major hurricanes has been alleviated, according to data Oct. 17 from the National Association of Home Builders/Wells Fargo.

Sentiment among American homebuilders unexpectedly increased to a three-month high as builders saw greater prospects for industry demand despite elevated material costs and shortages of labor and lots, according to data Aug. 15 from the National Association of Home Builders/Wells Fargo.