Builder confidence in the newly built single-family home market rose one point to 35 in August, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The index has spent 16 consecutive months below 40—the longest stretch since 2012—and August also marked the 16th straight month in which at least 30% of builders reported cutting prices to prop up demand.
NAHB attributed the persistent weakness to elevated mortgage rates, high construction costs and broader economic and geopolitical uncertainty, with rising gas and diesel prices pushing up materials. The index gauging current sales conditions rose two points to 39 in August, while measures of sales expectations over the next six months and prospective buyer traffic were unchanged at 43 and 23.
NAHB Chairman Bill Owens called the Midwest “a bright spot” for home building, with regional new home sales up more than 2% year to date. The Midwest’s three-month HMI average of 45 was also the highest of the four regions.
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