Homebuilder Confidence Hits Lowest Level Since September 2025

Prospective buyer traffic declined by three points. This hesitation in commitment and conversion is a result of rising mortgage rates, higher gas prices, and inflation fears, which pushed consumer confidence to a record low. These factors have stalled momentum for builders as they near the apex of the spring selling season. The National Association of Home Builders/Wells Fargo Housing Market Index fell four points to a reading of 34, its lowest level since September 2025. To counter the decline in demand, 36% of builders cut prices by an average of 5% in April. About 60% of builders reported using sales incentives, marking the 13th consecutive month with a share of at least 60%.