US Homebuilder Sentiment Hits One-Year Low

The NAHB/Wells Fargo Housing Market Index (HMI), which tracks US homebuilder confidence in the market for newly built single-family homes, fell to 32 in September 2026, the lowest in a year, compared to 35 in August and forecasts of 34. Current sales conditions fell four points to 35, sales expectations in the next six months dropped six points to 37 while traffic of prospective buyers held steady at 23. Also, 38% of builders cut prices in September, up from 35% in August.

The NAHB/Wells Fargo Housing Market Index (HMI), which tracks US homebuilder confidence in the market for newly built single-family homes, inched up to 35 in August of 2026 from 34 in the previous month. The result contrasted with expectations that it would ease to 33. Current sales conditions rose by two points from the previous month to 39, while sales expectations over the next six months were unchanged at 43. Despite this, 35% of builders were forced to cut prices in August, down two percentage points from July. Among those, the average price reduction was 6%.

The NAHB/Wells Fargo Housing Market Index (HMI), which tracks US homebuilder confidence in the market for newly built single-family homes, edged down to 34 in July 2026 from 36 in June and below forecasts of 35. Current sales conditions fell one point to 37. Sales expectations in the next six months dropped two points to 43 and the gauge for traffic of prospective buyers posted a two-point decline to 23. Meanwhile, there were signs of market cooling. 37% of builders cut prices in July, up from 35% in June and 32% in May. The average price reduction was 6% in July, the same rate as the previous month. The use of sales incentives was 63%, up slightly from 62% in June, and marking the 16th consecutive month this share has reached 60% or higher.