US Homebuilder Confidence Lowest in 7 Months

The NAHB/Wells Fargo Housing Market Index in the US which measures builder confidence in the market for newly built single-family homes, fell to 34 in APril 2026, the lowest since September 2025 from 38 in MArch and compared to forecasts of 37. Current sales conditions fell four points to 37. Sales expectations in the next six months dropped seven points to 42 and traffic of prospective buyers posted a three-point decline to 22. Meanwhile, 36% of builders cut prices in April, down slightly from 37% in March. The average price reduction was 5%, down from 6% in the previous month. The use of sales incentives was 60%, down from 64% in March, and marking the 13th consecutive month this share has reached 60% or higher.

The NAHB/Wells Fargo Housing Market Index in the US edged up to 38 in March 2026 from 37 in each of the previous two months, compared to forecasts of 37. Current sales conditions increased one point to 42. Sales expectations in the next six months gained two points to 49 and traffic of prospective buyers posted a three-point increase to 25. Also, 37% of builders cut prices in March, up slightly from 36% in February. The average price reduction remained stable at 6%. The use of sales incentives was 64% in March, down one percentage point from February, and marking the 12th consecutive month this share has exceeded 60%. "Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market", said NAHB Chairman Bill Owens.

The NAHB/Wells Fargo Housing Market Index eased to 36 in February of 2026 from 37 in the previous month, contrasting slightly with market expectations that it would improve to 38. It was the softest reading in five months, reflecting continued challenges in the US housing market. Builder sentiment deteriorated across most components of the index, with sales expectations in the next six months dropping by three points to 46, while the traffic of positive buyers dropped two points to 22. In turn, current sales conditions remained unchanged 41. Th survey reported that 36% of builders cut prices in the period, 4 percentage points below the ratio in January.