U.S. Homebuilder Confidence Hits 14-Year Low

The NAHB/Wells Fargo Housing Market Index fell three points to 29 in October 2026, the lowest reading since June 2012. Current sales conditions fell to 33, future sales expectations to 32, and prospective buyer traffic to 18, the lowest since April 2012 aside from April 2020. Mortgage rates climbed well above 7%. In October 43% of builders cut prices by an average 6%, the highest share in the 2020-2026 period, and 65% offered sales incentives, the 19th month above 60%. NAHB Chairman Bill Owens said rates above 7%, higher gas prices and inflation weakened buyer traffic. He said builders face higher loan, material and diesel costs, Trump administration regulatory reform is easing some cost pressures, and more than one-third of builders reported immigration enforcement activity that caused delays and discouraged legal workers from reporting to work. NAHB Chief Economist Robert Dietz said supply-side constraints and affordability challenges are squeezing housing, with higher rates, construction costs and weaker consumer confidence keeping buyers on the sidelines. Regional three-month averages were Northeast 38, Midwest 40, South 30 and West 26. Midwest permits rose 2.9%.