US Homebuilder Confidence Crashes To 14 Year Low, Blame Mortgage Rates & Immigration
American homebuilder confidence crashed to 29 in October - down from 32 in September and worse than the 31 print expected as rising mortgage rates, energy and material costs, and worsening labor and lot conditions have pushed builder sentiment to a 14-year low.
All three of the major HMI indices posted losses in October.
The index measuring current sales conditions fell two points to 33, the index gauging future sales expectations dropped five points to 32 and the index charting prospective buyer traffic fell five points to 18.
Judging by Future Sales expectations, builders are not going to be adding any new supply in a hurry...
“Housing remains squeezed by supply-side constraints and significant affordability challenges,” said NAHB Chief Economist Robert Dietz.
The latest HMI survey found that 43% of builders cut prices in October, the highest share during the 2020-2026 period.
The average price cut remained at 6% for the seventh consecutive month. Meanwhile, 65% of builders reported using sales incentives in October, the 19th straight month at least 60% of builders have done so.
Looking at the three-month moving averages for regional HMI scores, the Northeast dropped one point to 38, the Midwest fell three points to 40, the South fell one point to 30 and the West posted a two-point decline to 26.
However, as ugly as the data was, builder confidence has a long way to go before it catches down to homebuyer confidence...
Homebuyers have never been less enthusiastic about the American Dream... perhaps this is why...
The gap between current mortgage rates (7.5%) and the average mortgage across all of American homeowners (4.33%) is extreme to say the least, trapping sellers and buyers...
Who blinks first?
Tyler Durden Mon, 10/19/2026 - 10:25
Continue reading...
[ H/T ZeroHedge ]
American homebuilder confidence crashed to 29 in October - down from 32 in September and worse than the 31 print expected as rising mortgage rates, energy and material costs, and worsening labor and lot conditions have pushed builder sentiment to a 14-year low.
All three of the major HMI indices posted losses in October.
The index measuring current sales conditions fell two points to 33, the index gauging future sales expectations dropped five points to 32 and the index charting prospective buyer traffic fell five points to 18.
Judging by Future Sales expectations, builders are not going to be adding any new supply in a hurry...
“Housing remains squeezed by supply-side constraints and significant affordability challenges,” said NAHB Chief Economist Robert Dietz.
The latest HMI survey found that 43% of builders cut prices in October, the highest share during the 2020-2026 period.
The average price cut remained at 6% for the seventh consecutive month. Meanwhile, 65% of builders reported using sales incentives in October, the 19th straight month at least 60% of builders have done so.
Looking at the three-month moving averages for regional HMI scores, the Northeast dropped one point to 38, the Midwest fell three points to 40, the South fell one point to 30 and the West posted a two-point decline to 26.
However, as ugly as the data was, builder confidence has a long way to go before it catches down to homebuyer confidence...
Homebuyers have never been less enthusiastic about the American Dream... perhaps this is why...
The gap between current mortgage rates (7.5%) and the average mortgage across all of American homeowners (4.33%) is extreme to say the least, trapping sellers and buyers...
Who blinks first?
Tyler Durden Mon, 10/19/2026 - 10:25
Continue reading...
[ H/T ZeroHedge ]
