The Federal Reserve decided to raise the federal funds rate by 0.25% to a target range between 3.75% to 4%. The stated reasons revolved around continued uncertainty relating to "geopolitical developments" in the Middle East and trade concerns elsewhere. These concerns and uncertainty are similarly cited as some of the reasons behind a decrease in builder sentiment in September, according to the results of the most recent National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI). Additional factors include decreased buyer traffic due to increased mortgage rates, rising gas prices, rising material costs, and labor shortages. NAHB reported that builder confidence is the lowest it has been since September 2025. When comparing regional sentiment, the Midwest holds the highest builder confidence at 44 points, with the Northeast sitting at 39, the South at 31, and the West at 28.

 

Permits & Starts Higher Than Last Year
Though overall permits have decreased in the last couple of months, data shows that permits are up in 12.5% in the Northeast, 2.7% in the Midwest, and 1.7% in the West compared to September 2025. At a 3.5% decrease, the South is the only region where permits have declined. A similar trend is seen in overall starts compared to September 2025, with a 10% increase in the Northeast and 0.4% in the Midwest. Starts were lower in the South by 2.4% and in the West by 3%. Seasonally adjusted annual rates in the single- and multi-family sectors reveal that single-family starts were up 5.2% in August compared to the same time last year, while multi-family starts are down 14.6% in the same time period. A report from the NAHB Home Building Geography Index (HBGI) showed that single-family building opportunities have decreased significantly in all markets except in smaller metro areas and their outlying counties, a market that experienced a slight increase. Multi-family construction, however, increased in six of the seven geographic categories.

Tariff Relief House Bill
After the NAHB urged the Trump administration to exempt building materials from the mutual tariffs between the United States and Canada, the organization worked with Rep. Nanette Barrag??n (D-Calif.) to introduce a bill that would provide a process for doing just that. The Housing Tariff Exclusion Act (H.R. 10416) was introduced to the House on September 16 and referred to the House Committee on Ways and Means, which oversees taxes and revenue.

As seen in LASN magazine, October 2026.