Builder confidence in the market for newly built single-family homes was 37 in October, up five points from September and the highest reading since April, according to the National Association of Home Builders and Wells Fargo Housing Market Index.
“While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging,” NAHB Chairman Buddy Hughes said in a statement. “The housing market has some areas with firm demand, including smaller builders shifting to remodeling and ongoing solid conditions for the luxury market. However, most home buyers are still on the sidelines, waiting for mortgage rates to move lower.”
The HMI survey also revealed that 38% of builders reported cutting prices in October. This share has been between 37% and 39% since June.
The average price reduction rose to 6% in October after averaging 5% for several months. The last time builders reduced prices by 6% was in October 2024.
Read the full report here.
