Builder Sentiment Remains Weak Due to Affordability Concerns

By Jessica Coacci

Confidence among U.S. home builders worsened in July as affordability challenges stayed top of mind across the housing market.

Here are the main takeaways from the National Association of Home Builders' latest report released Thursday:

The NAHB/Wells Fargo Housing Market Index, a gauge of builder confidence in the market for newly built single family housing, decreased in July to 34 from 36 in June. Economists polled by The Wall Street Journal expected a reading of 35.

The reading below 50 means builder perceptions of current sales and sales expectations are net negative. Sentiment has had the longest stretch below 40 since 2012, NAHB said.

"Many potential buyers remain on the sidelines as they wait for lower mortgage rates, more certainty on inflation and a clearer economic outlook," said NAHB Chairman Bill Owens.

The latest HMI survey also revealed that 37% of builders cut prices in July, up slightly from June. The average price reduction was the same rate as the previous month. Meanwhile, the HMI index gauging sales conditions fell slightly.

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

July 16, 2026 10:14 ET (14:14 GMT)