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U.S. Homebuilder Sentiment Stays Weak as Price Cuts Hit Post‑Covid High

Buyer hesitancy reflects stalled mortgage‑rate relief alongside job insecurity.

Overview

  • The NAHB/Wells Fargo Housing Market Index ticked up to 38 in November, marking a 19th straight month below the 50 breakeven level.
  • Price reductions were reported by 41% of builders, the highest share since early 2020, with average cuts holding at 6% and sales incentives used by 65%.
  • Freddie Mac data show mortgage rates have stopped falling as Federal Reserve officials signal reluctance to lower rates again next month.
  • NAHB leaders cited a softening labor market, stretched household finances, and uncertainty after the record‑long government shutdown as key drags on demand.
  • Current sales rose to 41, future sales slipped to 51, buyer traffic edged to 26, and regional three‑month averages ranged from 48 in the Northeast to 30 in the West.