CNBC US Markets18.05.2026Business1 dk okumaUnited States

Homebuilder Sentiment Rises Slightly in May Amid Economic Headwinds

Index improves to 37, but remains in negative territory as affordability challenges persist.

housing market mortgage rates homebuilders

نظرة سريعة

Homebuilder sentiment rose 3 points to 37 in May, according to the NAHB/Wells Fargo Housing Market Index.
Despite improvements, the index remains below 50, indicating negative sentiment.
Rising mortgage rates and economic uncertainty continue to challenge the market.

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لماذا يهم

Homebuyer demand is being suppressed by higher mortgage rates, rising gas prices, and economic uncertainty related to the war with Iran. Builders, however, are seeing some improvement in their outlook.

حجم الخط

Higher mortgage rates, rising gas prices and continued economic uncertainty over the war with Iran are all still weighing on potential homebuyers. Builders, however, are feeling slightly better about their businesses, seeing a potential late spring surge.

After a sharp drop in April, homebuilder sentiment in the market for single-family homes rose 3 points in May to a readout of 37 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.

The index stood at 34 in May 2025, when mortgage rates were hovering around 7%. They are lower now, but have been rising over the past few weeks. The average rate on the 30-year fixed mortgage is now 6.65%, according to Mortgage News Daily.

"Recent increases for long-term interest rates will continue to hold back home buyer demand," said Robert Dietz, NAHB's chief economist, in a release. "Although some regional markets, including parts of the Midwest, are showing relative strength, the housing market continues to face significant affordability challenges."

All three of the index's components were higher by 3 points month over month, with current sales conditions rising to 40, buyer traffic jumping to 25 and future sales expectations up to 45.

The survey also found fewer builders cutting prices in May, at 32% compared with 36% in April. The use of sales incentives was reported at 61% in May, up slightly from 60% in April.