Construction workers carry OSB seats when building roofs in Irvine, California, USA on March 28, 2025.
Mike Blake | Reuters
Country home builders continue to see weaker demand from potential buyers who are concerned about the wider economy. As a result, they are cutting prices at the highest rate in three years, according to the National Association of Home Builders’ Trust Survey.
Builder’s confidence in July improved slightly, rising by 1 point in the NAHB index to 33. Still, those under 50 are considered negative emotions. The index was 41 last July, and has been in negative territory for the 15th consecutive month.
This month’s small boost comes from the recently passed budget law. This provided some tax cuts to households, home builders and small businesses. But mortgage fees have hovered at the same narrow level for several months.
“This new law should provide economic momentum after the unfortunate spring, but the housing sector was weakened in 2025, particularly due to low affordability conditions due to rising interest rates,” said Budyder, NAHB chairman and builder in Lexington, North Carolina.
So, 38% of builders said they’ve cut their prices in July and are the best share since NAHB began tracking metrics in 2022. It was cut by just 29% in April. The average price reduction was 5% in July, and has been in place every month since November.
Builders are cutting mortgage fees to help buyers get into the door.
“If public builders supplement mortgage rate buyouts with a more complete price reduction, they are likely to experience greater negative gross profits and EPS drugs, so increasing volume and SG&A leverage will rarely offset margin drugs.”
Of the three components of the index, current sales terms have risen by 1 percentage point, and sales expectations have risen by 3 percentage points over the next six months, up 43 percentage points.
“We’re looking forward to seeing you in the process of NAHB’s Chief Economist,” said Robert Dietz. “Detached home permits have fallen by 6% since the start of the year, and builder traffic at HMI is at a low of more than two years.”
Regionally, builder sentiment was strongest in the northeast, flat in the Midwest and further declined in the south and west, and further declined in the south and west, which was weakest.
Fixed: Builder sentiment in the Northeast increased by 2 points. Previous versions have misrepresented the movement.
