"According to the data, 38% of builders reported cutting prices in October. This share has hovered between 37% and 39% since June. But while this measure has stayed steady, the average price reduction rose to 6% after averaging 5% for the past several months. The last time builders reduced prices by 6% was in October 2024. While the size of the average price cut increase, the use of sales incentives remained at 65%, the same as in September."
"The HMI gain in October is a positive signal for 2026 as our forecast is for single-family housing starts to gain ground next year, Robert Dietz, the NAHB's chief economist, said in a statement. The 30-year fixed-rate mortgage fell from just above 6.5% at the start of September to 6.3% in early October. Combined with anticipated further easing by the Federal Reserve, builders expect a slightly improving sales environment, albeit one in which persistent supply-side cost factors remain a challenge."
Thirty-eight percent of builders reported cutting prices in October, a share that has hovered between 37% and 39% since June. The average price reduction rose to 6% after averaging 5% for several months, matching the last 6% cut recorded in October 2024. Sales incentives remained at 65%, unchanged from September. The Housing Market Index improved, with current sales conditions up four points to 38, traffic of prospective buyers up four points to 25, and six-month sales expectations jumping nine points to 54. The 30-year fixed mortgage rate fell to 6.3%, supporting slightly improving sales expectations despite persistent supply-side cost challenges.
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