US Builder Confidence for Newly Built Single-Family Homes Rises in October

On Thursday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder confidence for newly built single-family homes rose five points to 37 in October, the highest level since April. Despite the increase, sentiment has remained in negative territory for 18 consecutive months.

The October HMI survey showed that 38% of builders reported cutting prices, consistent with the 37–39% range seen since June. The average price reduction rose to 6% in October after holding near 5% for several months—the highest share since October 2024. The use of sales incentives remained unchanged at 65%.

All three HMI components increased in October. The index measuring current sales conditions rose four points to 38, the gauge of sales expectations for the next six months jumped nine points to 54, and the measure of prospective buyer traffic increased four points to 25.

Regional three-month moving averages showed mixed results. The Northeast rose two points to 46, the Midwest was unchanged at 42, the South increased two points to 31, and the West gained two points to 28.