Builder Confidence Remains Low

During April, builder confidence has remained low as a result of ongoing concerns about tariffs and high material costs, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Recent mortgage rate dips did result in a slight rise in builder sentiment, but overall, it stayed negative. This is because many builders report already feeling the impacts of tariffs. Of those surveyed, 60% of builders said suppliers have begun raising prices due to tariffs, with material costs going up by an average of 6.3%, adding about $10,900 to the cost of a new home.

“The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,” said NAHB Chairman Buddy Hughes, a home builder and developer from Lexington, N.C. “At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.” Read more