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Home Builder Sentiment in USA Drops to Seven-Month Low in April: NAHB Survey

  • by- Zaid
  • Apr 16, 2026
U.S. homebuilder sentiment deteriorated in April, hitting a seven-month low as the war with Iran led to higher prices for materials and mortgage rates as well as increased economic uncertainty, a survey showed.
Home Builder Sentiment in USA Drops to Seven-Month Low in April: NAHB Survey

April 16: The National Association of Home Builders/Wells Fargo Housing Market index dropped four points to 34 this month, the lowest level since September 2025, staying below the 50 break-even point for 24 straight months.

Key Findings

Metric Value
Current sales conditions Down 4 points to 37
Future sales gauge Down 7 points to 42
Prospective buyer traffic Down 3 points to 22
Builders cutting prices 36% (down from 37%)
Builders using sales incentives          60% (down from 64%)

Mortgage Rates

  • Late February (pre-war): 5.98%

  • Early April: 6.46%

  • Last week: 6.37%

Builder Challenges

NAHB Chief Economist Robert Dietz said:

  • 62% of builders reported suppliers had increased building material costs due to higher fuel prices

  • Energy costs make up approximately 4% of residential construction material input and service costs

  • 70% of builders reported challenges pricing homes given uncertainty about material costs

Additional Cost Pressures

  • President Trump's sweeping tariffs on imported building materials and appliances

  • Higher labor costs due to mass deportations reducing worker supply

NAHB Chairman's Statement

Bill Owens, NAHB Chairman, 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."