Builder confidence in the market for newly built single-family homes fell three points to 32 in September, its lowest reading since September 2025, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Any number over 50 indicates more builders view conditions as good than poor.
“Buyer traffic has weakened across much of the country, largely because of rising mortgage rates,” NAHB reported. “Builders also continue to face higher material costs, rising gas and diesel prices and persistent labor shortages. In some markets, builders report that increased immigration enforcement is discouraging legal workers from reporting to job sites.”
The survey found 38% of builders cut prices in September, up from 35% in August, with the average reduction holding at 6% for a sixth consecutive month. Sales incentives were even more widespread: 66% of builders used them, up from 63% in August and the largest share since 67% in December.
The index for current sales conditions fell four points to 35, sales expectations over the next six months dropped six points to 37, and prospective buyer traffic held at 23.
Read the full report here.
