U.S. Homebuilder Confidence Falls to Seven-Month Low as Tariffs Drive Costs Higher

Builder sentiment drops to 39 in March, with rising material costs and economic uncertainty weighing on the housing market.

The NAHB/Wells Fargo Housing Market Index declined to 39 in March, its lowest level since August 2024, reflecting a drop in builder confidence.
Tariffs on steel, aluminum, and lumber are estimated to add $9,200 in construction costs per home, further straining the housing market.
Homebuyer traffic reached its lowest level since December 2023, as builders report declining interest from prospective buyers.
Builders are responding to challenges with price cuts and incentives, with 29% cutting prices in March, up from 26% in February.
Mortgage rates have fallen for six consecutive weeks, offering some relief to buyers, while regulatory adjustments aim to ease supply-side pressures.