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U.S. Homebuilder Confidence Falls to 34, Lowest Since September 2025

Builders report higher material costs, volatile mortgages, heavier use of incentives.

Overview

  • The NAHB/Wells Fargo index fell four points to 34 on Wednesday, the weakest reading since September 2025 as rising mortgage rates and weak buyer confidence cut demand.
  • All three components dropped in April, with current sales at 37, six-month expectations at 42, and buyer traffic at 22.
  • Sixty-two percent of builders said suppliers raised material prices, 70% said pricing homes became harder, and NAHB estimates energy makes up about 4% of construction input costs.
  • Builders leaned on concessions, with 36% cutting prices by an average 5% and 60% using incentives for the 13th straight month.
  • Regional performance diverged, with the South steady at 35 while the Northeast fell to 42, the Midwest to 41, and the West to 29.