Story perspectives

Homebuilder Confidence Drops to 12-Year Low in October

By Drooid · Oct 19, 2026, 10:49 PM UTC · How we work

Summary

Story summary

U.S. homebuilders' confidence fell to a 12-year low in October, index 29.
The 30-year fixed mortgage rate averaged 7.40% last week, the highest in nearly three years.
Forty-three percent of builders cut prices in October, averaging a 6% reduction for seven months.
Sixty-five percent of builders offered incentives such as mortgage-rate buydowns, marking the 19th month above the 60% threshold.

History

Historical Context

December 2008 saw the NAHB/Wells Fargo Housing Market Index plunge to 30 as the Fed cut its rate to 0.25%, 30-year yields fell to 5.5% and home values were 30% below the 2006 peak. Today the index sits near 29, 30-year rates sit at 7.4% and builders cut prices, mirroring the post-boom slump after the August 2005 boom end and the Fed’s 2004-2006 rate hikes.

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Story summary

U.S. homebuilders' confidence fell to a 12-year low in October, index 29.
The 30-year fixed mortgage rate averaged 7.40% last week, the highest in nearly three years.
Forty-three percent of builders cut prices in October, averaging a 6% reduction for seven months.
Sixty-five percent of builders offered incentives such as mortgage-rate buydowns, marking the 19th month above the 60% threshold.

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