Builder confidence for newly built single-family homes increased to 33 in July, up one point from June, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB attributed the slight boost in July to the passage of the One Big Beautiful Bill Act but said elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
“The passage of the One Big Beautiful Bill Act provided a number of important wins for households, home builders and small businesses,” NAHB Chairman Buddy Hughes said in a statement. “While this new law should provide economic momentum after a disappointing spring, the housing sector has weakened in 2025 due to poor affordability conditions, particularly from elevated interest rates.”
The HMI survey revealed that 38% of builders reported cutting prices in July, the highest percentage since NAHB began tracking this figure every month since 2022.
Read the full report here.
