Builder confidence for newly built single-family homes increased to 40 in April, up one point from March, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB attributes the increase to a retreat in mortgage interest rates in recent weeks. However, sentiment remains low due to economic uncertainty, the threat of tariffs and elevated construction costs.
“The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,” NAHB Chairman Buddy Hughes said in a statement. “At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.”
The HMI survey revealed 29% of builders cut home prices in April, unchanged from March.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
Read the full report here.
