Builder Sentiment Continues Decline In August – NMP Skip to main content

Builder Sentiment Continues Decline In August

Aug 15, 2024
NAHB Home Builder Confidence
Contributing Writer

Low affordability causing buyers to hesitate has led more builders to cut prices so as to bolster sales

Builder confidence in the market for new single-family homes fell to 39 in August, down two points from a downwardly revised reading of 41 in July, the National Association of Home Builders (NAHB) and Wells Fargo reported in their latest Housing Market Index (HMI).

A lack of affordability and buyer hesitation from elevated interest rates and high home prices contributed to the decline in builder sentiment. All three HMI components in August remain below the key threshold of 50:

  • Present sales conditions fell two points to 44.
  • Expected sales in the next six months increased one point to 49.
  • Traffic of prospective buyers declined two points to 25.
nahb august builder sentiment survey
Source: National Association of Home Builders

Additionally, the August survey revealed that builders are increasingly cutting prices to bolster home sales; 33% of builders did so in August compared to 31% in July and 29% in June. However, the average price reduction in August held steady at 6% for the 14th straight month.

The NAHB’s builder sentiment survey comes on the heels of separate findings that home builder credit tightened in the second quarter, rendering the construction of single-family homes more expensive. Average effective rates on loans for land acquisition and speculative single-family construction were the highest they’ve been since 2018.

About the author
Contributing Writer
Ryan Kingsley is a contributing writer for NMP.
Published
Aug 15, 2024
New-Home Mortgage Demand Slips Despite Widespread Builder Incentives

Applications fell 5.7% annually in July, while government-backed mortgages accounted for half of builder-affiliated loan volume

Aug 21, 2026
Fannie Mae Returns To Distressed-Loan Market With $214 Million Sale

The agency’s first nonperforming-loan offering in 13 months transfers 969 deeply delinquent mortgages to private buyers, including a small pool concentrated in Dallas-Fort Worth

Aug 20, 2026
Summer Rate Spike Knocks Pending Home Sales To Six-Month Low

Contract signings fell in every region during July, leaving purchase activity 30% below its 2019 level despite a larger workforce

Aug 19, 2026
Cash Sales Retreat, Giving Financed Buyers More Room To Compete

Cash transactions fell faster than the broader housing market in early 2026, but buyers without financing still accounted for nearly one-third of home sales

Aug 19, 2026
Mortgage Delinquencies Ease, But FHA Distress Keeps Deepening

Overall delinquencies dipped in the second quarter, but FHA serious delinquencies jumped 227 basis points from a year earlier as more troubled loans moved toward foreclosure

Aug 18, 2026
Credit-Score Choice Is Becoming Part Of The Mortgage Sales Pitch

One-third of consumers say they would consider switching lenders over older scoring models, making underwriting technology a potential borrower-retention issue

Aug 18, 2026