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Homebuilder Sentiment Stays Negative as Tariff Costs and Policy Uncertainty Persist

The NAHB/Wells Fargo index rose slightly to 40 in April, but builders face rising material costs, high mortgage rates, and delays in new projects due to unclear trade policies.

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Data: NAHB/Wells Fargo Housing Market Index; Note: Seasonally adjusted; Chart: Axios Visuals
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Overview

  • The NAHB/Wells Fargo Housing Market Index for April 2025 increased to 40, reflecting ongoing negative sentiment among U.S. homebuilders.
  • Sixty percent of builders report material cost hikes linked to tariffs, adding an estimated $10,900 to the price of a new home.
  • Builders are pausing new projects and delaying permits, citing uncertainty over trade and immigration policies under the Trump administration.
  • Mortgage rates remain near 7% following a Treasury bond selloff tied to tariff policies, further dampening buyer demand.
  • The U.S. housing market continues to face a shortage of 1.5 to 4 million units, keeping home prices elevated despite sales incentives by builders.