The NAHB/Wells Fargo Housing Market Index (HMI), which measures U.S. homebuilder confidence in the market for newly built single-family homes, declined for a second straight month in October 2026, falling to 29 from 32 in September. This reading, below consensus expectations of 32, marks the lowest level since June 2012.
The index’s component measuring current sales conditions slipped two points to 33, matching a 14-year low. Builders’ sales expectations for the next six months dropped five points to 32, the weakest level since November 2022, while the gauge of prospective buyer traffic fell five points to 18.
Pricing pressure intensified as well: 43% of builders reduced home prices in October, the highest share recorded during the 2020–2026 period. The average price reduction held at 6% for the seventh consecutive month.
“Housing remains squeezed by supply-side constraints and significant affordability challenges. Demand persists, but higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping more buyers on the sidelines,” said Robert Dietz, NAHB chief economist.
