B
uilder confidence stayed flat in September, the National Association of Home Builders (NAHB) reports, with its Housing Market Index (HMI) hovering around 32–33—its lowest level in three years. Despite this, many builders remain hopeful that falling mortgage rates could revive demand.

    The NAHB’s latest survey shows 39 % of builders reduced prices in the last month, the highest share since the pandemic, according to chief economist Robert Dietz. “Builder sentiment has been stuck between 32 and 34 since May, yet there is optimism that a more favorable rate environment could coax buyers back in the last quarter of 2025,” Dietz said.

    Mortgage rates are easing ahead of the Federal Reserve’s September 17 meeting. The average 30‑year fixed rate fell to 6.13 % on September 16 from 6.59 % a month earlier, according to Mortgage News Daily. This decline has lifted the index measuring future sales expectations to 45 in September, the strongest reading since March.

    Regional differences persist. Builders in the Northeast lead with an HMI of 44, reflecting the highest optimism, while the West lags at 26, the lowest score. For now, confidence remains subdued as material costs rise, but the potential for a rate cut could spark a rebound in builder sentiment.