Home builders confidence got a slight boost in July, citing ‘momentum’ from Trump’s tax bill
Home builders report feeling more confident in July after a ‘disappointing spring,’ yet confidence is still in ‘negative territory,’ a report found
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Home builders reported feeling slightly more confident in future sales in July thanks to “momentum” from Trump’s tax bill — but remained low overall.
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On Thursday, the National Association of Home Builders/Wells Fargo Housing Market Index reported confidence in future sales for single-family homes rose one point in July to 33 from 32 in June, out of 100 possible points. Builders' confidence reports have been in “negative territory” for 15 months straight, the report noted.
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On July 4, President Donald Trump signed his ‘Big Beautiful Bill’ into law, which had an impact, according to the survey.
“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.”
Mortgage rates are currently above 6%, a rate too high for many homebuyers, and more than half of homeowners said they wouldn’t buy or sell this year regardless of the mortgage rate, a new study found. Out of the group of homeowners who said they would be open to buying a new home this year, about 75% said rates would have to fall below 5% for them to consider it.
New mortgage applications also are dropping as interest rates rise, and sellers are responding to a lack of buyer interest by taking their homes off the market. Delistings were up 50%, and 20% of sellers who are keeping their homes on the market are slashing prices to compete, a June report found. Active listings exceeded one million last month as potential buyers struggle to afford rising housing costs.
Home builders are feeling these market impacts too. The report found that 38% of builders slashed prices in July — marking the highest percentage since the index started tracking this number every month in 2022. Builders reduced prices by an average of 5% while 62% of home builders used sales incentives last month.
“Single-family permits are down 6% on a year-to-date basis and builder traffic in the HMI is at a more than two-year low,” NAHB Chief Economist Robert Dietz said.