Builder sentiment climbed one point to 33 in July; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
Regarding the three components of the homebuilder index, sales expectations rose three points to 43; current sales conditions rose one point to 36; and buyer traffic decreased one point to 20.
Thirty-eight percent of builders reported cutting prices in July compared with 37% in June, 34% in May and 29% in April. The average price discount remained at 5% for the month. Sixty-two percent of builders were using sales incentives other than price cuts to improve sales in July, which is unchanged from June.
“The passage of the One Big Beautiful Bill Act provided a number of important wins for households, home builders and small businesses,” said NAHB Chairman Buddy Hughes. “While this new law should provide economic momentum after a disappointing spring, the housing sector has weakened in 2025 due to poor affordability conditions, particularly from elevated interest rates.”
