American housing builders’ sentiment has experienced a “sharp decline” in April due to concerns about the economy.
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) declined four points this month, NAHB said in an April 15 statement. The index, which measures builder confidence in the market for newly built single-family homes, was at 34 this month, the lowest level since September 2025.
“Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty,” NAHB Chairman Bill Owens said.
“The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market.”
The weekly average rate of a 30-year fixed-rate mortgage had slipped below the 6 percent level for the week ending Feb. 25, just before the Iran war, according to data from Freddie Mac. However, rates have since shot up, and for the week ending April 8, it was recorded at 6.37 percent.
The 12-month inflation rate, which was 2.4 percent in February, jumped to 3.3 percent in March. Consumer sentiment dipped roughly 11 percent in April, according to the University of Michigan’s Surveys of Consumers.
Moreover, the national average price of regular gasoline was $4.09 per gallon on April 16, up from $3.72 a month back, according to data from the American Automobile Association.
NAHB said that 36 percent of builders cut prices in April, with the average price reduction being 5 percent.
The HMI index gauging current sales conditions fell four points, while another index measuring future sales declined by seven points.
“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,” NAHB Chief Economist Robert Dietz said.
“Energy costs make up approximately 4% of residential construction material input and service costs. With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs.”
The Trump administration has taken various steps to make homes more affordable to buyers and strengthen the housing market.
On March 13, Trump signed an executive order titled “Removing Regulatory Barriers to Affordable Home Construction.”
“Layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing. These constraints have made housing less affordable for many Americans,” Trump wrote in the order.
Regulations imposed by the government at all levels added more than $90,000 on average in a single-family home’s final price in 2021, the White House said in a March 13 fact sheet.
“President Trump recognizes that homebuilders must be empowered to build and that American families need relief now, which is why he is taking action to remove regulatory barriers to affordable home construction,” the fact sheet said.
Meanwhile, a survey showed that more than a third of American workers are delaying or canceling major purchases, such as a home, due to concerns about job security, real estate brokerage Redfin said in an April 15 statement.
“Seven percent of workers say they have missed a rent or mortgage payment entirely in the last three months, and another 10% say they have been late on a housing payment,” the brokerage said.
“Roughly one in seven (15%) workers say they are ‘very’ or ‘somewhat’ likely to be late on their mortgage or rent in the next three months. Thirteen percent say they are ‘very’ or ‘somewhat’ likely to miss a housing payment entirely in the next three months.”
On the plus side, more than half the workers said they have emergency funds to cover their monthly mortgage or rental payments in case they suffer a financial crisis.
In addition, an “overwhelming” 70 percent of workers who said they were confident regarding their job security had all made recent housing payments on time, Redfin said.
