The National Association of Home Builders conducts a monthly survey to gauge builder confidence in the market for newly built homes. Its Housing Market Index scores builders’ responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In September, the index rose two points to 41, breaking a streak of four consecutive monthly declines. Carl Harris, NAHB’s chairman, says the reason is simple. “Thanks to lower interest rates, builders now have a positive view for future new home sales for the first time since May 2024,” Harris said. “However, the cost of construction remains elevated relative to household budgets, holding back some enthusiasm for current housing market conditions.” Survey results do show builders more optimistic about the future than current conditions, with the component measuring expectations for the next six months up four points and the component measuring current conditions up only one point from last month. (source)