"The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI)'s builder confidence gauge remained relatively flat, rising one point to 38 in November. A score of 38 reflects negative sentiment and a year-over-year decline from 46, both of which are a far cry from 2022's peak reading of 83. Many builders report steady interest and traffic in their communities, but buyers remain on the sidelines, hoping that mortgage rates will be lower in 2026."
"While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation, said NAHB Chairman Buddy Hughes, a home builder and developer from Lexington, N.C. The HMI survey found that 41% of builders reported cutting prices in November, a record high in the post-COVID era. The average price reduction was 6%, unchanged from November, and about two-thirds of builders reported using sales incentives."
Builder confidence remains subdued, with the NAHB/Wells Fargo HMI rising one point to 38 in November, down from 46 year-over-year and far below 2022's peak of 83. Interest and traffic in communities are steady, but many buyers are postponing purchases in hopes of lower mortgage rates in 2026. Affordability improvements from lower rates are offset by concerns about job security, a record-long government shutdown, and recent layoffs. Price cutting reached a post-COVID record, with 41% of builders reducing prices and an average reduction of 6%; roughly two-thirds of builders offered sales incentives.
Read at www.housingwire.com
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