10/14/2026
U.S. Builder Sentiment Hits 12-Month Low
Builder confidence has reached its lowest point in a year, with the index dropping to 32 in late Q3. Current sales conditions declined to 35 and expectations for the next six months dipped to 37. While prospective buyer traffic remained at 23, I’m seeing firsthand how builders are adapting—38% have reduced prices, and incentives are up, with two-thirds of builders nationwide offering them, compared to 63% earlier in the quarter. Mortgage applications for new homes have now fallen for five straight months, as average 30-year rates linger in the high-6% range. Many larger builders are turning to rate buydowns, enabling buyers to secure below-market mortgage rates and maintain sales momentum, rather than relying only on price reductions. With 30-year rates hovering near 7% in late Q3, two major housing forecasters anticipate rates will stay elevated—at or above the high-6% range—through 2027. As someone who works closely with new construction and buyers in Cheyenne, I’m always watching these shifts to help my clients navigate a changing landscape.
