US Builder Confidence for Newly Built Single-Family Homes Sinks in September
Builder Sentiment Falls on Higher Interest Rates and Costs
On Wednesday, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment for newly built single-family homes fell to 32 in September, down 3 points from 35 in August. Sentiment has now remained below 40 for 17 consecutive months.
The HMI survey showed that 38% of builders reported cutting prices in September, up from 35% in August. The average price reduction was 6% for the sixth consecutive month. The use of sales incentives rose to 66% in September from 63% in August, the highest share since 67% in December 2025.
The HMI component measuring current sales conditions fell 4 points to 35, while the gauge of sales expectations over the next six months dropped 6 points to 37. The index tracking prospective buyer traffic was unchanged at 23.
Regional three-month moving averages showed mixed results. The Northeast fell 5 points to 39; the South declined 1 point to 31; the West rose 1 point to 28; and the Midwest dropped 1 point to 44.
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