U.S. Home-Builder Sentiment Slips Amid Economic Uncertainty

Published: 2026-04-15 10:18:19 ET WFC

Published on 04/15/2026 at 10:18 am EDT

By Jessica Coacci

Confidence among U.S. home builders fell in April as rising building materials prices, elevated interest rates and an increased economic uncertainty weighed during the heart of spring-buying season.

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

The NAHB/Wells Fargo Housing Market Index, a gauge of builder confidence in the market for newly built single family housing, was 34 in April, down from 38 in March. The reading was the lowest level since September 2025. Economists polled by the Wall Street Journal expected a reading of 37.

The reading below 50 means builder perceptions of current sales and sales expectations are net negative.

The latest HMI survey also revealed that 36% of builders cut prices in April, down slightly from 37% in March. The average price reduction was 5%, down from the 6% figure in March. The use of sales incentives was 60% in April, down from 64% in March, and marking the 13th consecutive month this share has reached 60% or higher, the survey said.

"With oil prices higher in the U.S., 62% of builders reported suppliers have increased building material costs due to higher fuel prices, including gas and diesel," said NAHB Chief Economist Robert Dietz.

The HMI index gauging current sales conditions fell four points to 37 from March to April. The index measuring future sales dropped seven points to 42 and the index charting traffic of prospective buyers posted a three-point decline to 22.

"With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs," Dietz added.

Write to Jessica Coacci at [email protected]

(END) Dow Jones Newswires

04-15-26 1017ET