The National Association of Home Builders (NAHB) released their Wells Fargo Housing Market Index (HMI) recently. It shows that builder confidence for newly built single-family homes was 34 in May - ticking in six points down from April.

 

Builder confidence is the lowest since December 2022 when the index hit 31. However, 90% of the respondents had already submitted their opinions when the May 12 announcement that the U.S. and China would reduce tariffs for 90 days. Builder material costs, interest rates, and tariff concerns had played a large role in respondents opinions.
"The spring home buying season has gotten off to a slow start as persistent elevated interest rates, policy uncertainty and building material cost factors hurt builder sentiment in May," said NAHB Chairman Buddy Hughes, a home builder and developer from Lexington, N.C.

The west posted a two-point decline in the regional HMI score as 34% of builders cut home prices in May while the average price reduction was 5% in the same time.