Homebuilder Confidence Inches Up Despite Rising Costs

Homebuilders are feeling just a tad more confident as the summer housing market draws to an end.Homebuilder confidence in current sales conditions bumped up one point, raising the National Association of Home Builders/Wells Fargo Housing Market Index to 35 on Monday. Anything under 50 reflects that more builders view the market for new homes as "poor" than "good."The subdued mood reflects a market where elevated mortgage rates are stifling buyers' appetites and compressing builder's margins, but new-home sales remain somewhat steady.While builder confidence based on sales expectations and prospective buyer traffic didn't budge, builders expressed slightly better views of current sales conditions.NAHB Chairman Bill Owens says the low confidence reading reflects concerns about both high construction costs and broader economic uncertainty.“Rising gas and diesel prices are pushing up material costs, and spec home building remains weak as many prospective buyers stay on the sidelines," Owens says. "However, the Midwest remains a bright spot for the home building industry, with new home sales up in that region more than 2% so far in 2026."About 35% of buyers cut prices in August, from 37...