Builder confidence remains challenged as of late due to continued economic uncertainty, but the industry feels the future may be looking up, according to the latest data from the National Association of Home Builders (NAHB).
The NAHB/Wells Fargo Housing Market Index (HMI) for July found that builder confidence registered at 33 (out of 100), up one point from June’s reading of 32. July’s reading marks the 15th consecutive month that builder confidence has been in negative territory, and still a historic low as observed in June.
NAHB Chairman Buddy Hughes pointed to the recent passing of the Trump Administration’s One Big Beautiful Bill as the reason for the small uptick in confidence, as the bill “provided a number of important wins for households, homebuilders and small businesses.”
This more positive sentiment is reflected in parts of the HMI indexes. The index gauging confidence toward current sales conditions also went up one point in July to 36, while confidence toward sales in the next six months grew three points to 43.
However, the index gauging confidence toward buyer traffic decreased one point to 20, which was the lowest recorded reading since the end of 2022.
“While this new law should provide economic momentum after a disappointing spring, the housing sector has weakened in 2025 due to poor affordability conditions, particularly from elevated interest rates,” Hughes explained.
The HMI also reported that the amount of builders cutting prices hit the highest percentage reported since 2022 at 38%, compared to 37% in June. Price reductions remained at 5%, the same it has been since November 2024. Sales incentives were also unchanged at 62% usage.
Looking at the three-month moving averages for regional HMI scores, the Northeast increased two points to 45, the Midwest held steady at 41, the South dropped three points to 30 and the West declined three points to 25.
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