The National Association of Home Builders’ Housing Market Index – which measures builder confidence – is based on a monthly survey of builders. The survey is scored on a scale where any number above 50 indicates that more builders view conditions as good than poor. In October, the NAHB’s index was up five points to 37, with the component gauging future expectations passing 50 for the first time since January. Robert Dietz, NAHB’s chief economist, says it’s a positive sign for 2026. “The HMI gain in October is a positive signal for 2026, as our forecast is for single-family housing starts to gain ground next year,” Dietz said. “The 30-year fixed-rate mortgage fell … in early October. Combined with anticipated further easing by the Fed, builders expect a slightly improving sales environment, albeit one in which persistent supply-side cost factors remain a challenge.” Also in the results, 38 percent of home builders reported cutting prices in October, with the average price reduction up to 6 percent. (source)
