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uilders' optimism about future sales has increased, despite concerns over high interest rates and construction costs. The National Association of Home Builders' monthly index showed a steady confidence rating of 46 in December, with no improvement from November's reading. However, expectations for six-month sales reached a three-year high, according to Robert Dietz, NAHB chief economist.

    While builders are bracing for headwinds, they anticipate future regulatory relief following the election. This optimism comes as mortgage applications for new homes continue to rise, up 7.2% in November compared to the previous year, according to the Mortgage Bankers Association. This trend has been ongoing since February 2023.

    Builder incentives and price cuts remain unchanged, with 60% offering incentives and 31% cutting prices. The average price reduction remains at 5%. Regionally, Northeast builders are most optimistic, with a three-month rolling average index score of 57, followed by the Midwest (46), South (44), and West (40).