Business · Economy · 16 hrs ago
US homebuilder confidence falls to its lowest level since 2012
A measure of US homebuilder confidence fell to 29 in October, its lowest level since June 2012.
The index, published by the National Association of Home Builders and Wells Fargo, dropped three points and was below economists’ forecast of 31.
Higher mortgage rates and building costs are squeezing the market as borrowing, materials and fuel become more expensive.
The slowdown also reflects labor shortages and tariffs, while weaker demand has left builders with more unsold new homes.
Builders are cutting prices to attract buyers: 43% said they reduced prices in October, the highest share since 2020, with average cuts at 6%.
The weaker market adds to the US housing affordability strain, as high prices and mortgage costs keep some buyers away.
The sources give no specific next step for the index or the housing market.
US homebuilder confidence fell three points to 29 in October, its lowest level since June 2012.
The NAHB and Wells Fargo index was below the median forecast of 31 in a Bloomberg survey.
Higher mortgage rates, construction costs and labor shortages weighed on builders, while housing affordability remained a concern.
The share of builders reporting price cuts rose to 43% in October, the highest level reported for 2020–2026.
- Who
- US homebuilders, as measured by the National Association of Home Builders and Wells Fargo.
- What
- Their confidence index fell three points to 29, its lowest level since June 2012.
- When
- October 2026.
- Where
- United States.
- Why
- Higher mortgage rates and construction costs, labor shortages and affordability problems weighed on the market.
This story does not have two clearly opposing sides.
The average 30-year fixed mortgage rate reached 7.40%, its highest level in nearly three years, according to Freddie Mac data cited by El Economista MX.
The NAHB-Wells Fargo index fell three points to 29, its lowest level since June 2012.
Bloomberg HT published its report on the index.
El Economista MX published its report on the index.
- Index
- 29 in October, down 3 points
- Previous low
- June 2012
- Economist forecast
- 31 points in Bloomberg’s survey
- Price cuts
- 43% of builders reported cutting prices in October
- Average price reduction
- 6.0% for the seventh consecutive month
- Mortgage rate
- 7.40% average for a 30-year fixed loan last week
3 sources
What people are saying
Builders are also facing higher costs for construction loans, building materials and diesel fuel, as well as a persistent labor shortage.
The housing market remains under pressure from supply-side constraints and serious affordability challenges. Demand remains, but rising mortgage rates, high construction costs and weakening consumer confidence are keeping more buyers on the sidelines.