B
uilder confidence ticked up in April, but concerns about future sales are growing due to rising costs. The National Association of Home Builders' housing market index rose to 40, a one-point increase from March's reading. NAHB Chairman Buddy Hughes attributed the slight gain to lower mortgage rates, which may have encouraged buyers to make purchases.

    However, builders are uncertain about future sales, with expectations for home sales over the next six months declining. Hughes noted that tariffs and labor shortages are contributing to market volatility. A majority of builders (60%) reported that their suppliers had increased prices due to tariffs, with an average hike of 6.3%. This could add nearly $11,000 to the cost of a new home.

    The uncertainty caused by tariff announcements is already affecting businesses and consumers, according to Paul Emrath, NAHB's vice president for survey and housing policy research. Builder confidence remains lower than it was a year ago, when the index stood at 51. The Northeast region remains the most optimistic, while builders in the West are the least confident.