US Home Builder Sentiment Drops to Seven-Month Low in April

NAHB survey cites higher prices, mortgage rates, and economic uncertainty due to Iran war

Apr. 15, 2026 at 2:08pm

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An abstract geometric composition featuring intersecting triangles and rectangles in shades of blue, red, and yellow, conceptually representing the decline in U.S. homebuilder sentiment amid economic uncertainty and rising costs.Homebuilder optimism wanes as economic pressures mount, casting a shadow over the U.S. housing market's near-term prospects.Washington Today

U.S. homebuilder sentiment deteriorated in April, hitting a seven-month low as the war with Iran led to higher prices for materials and mortgage rates as well as increased economic uncertainty, according to a survey by the National Association of Home Builders (NAHB).

Why it matters

The drop in homebuilder sentiment reflects broader economic challenges facing the U.S. housing market, including rising costs, higher mortgage rates, and declining consumer confidence - all of which could slow the pace of new home construction and sales in the coming months.

The details

The NAHB/Wells Fargo Housing Market index fell 4 points to 34 in April, the lowest level since September 2025. Economists had forecast a decline to 37. NAHB Chairman Bill Owens said "the year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market." The U.S.-Israel war with Iran has pushed up mortgage rates, which had fallen at the start of the year. The popular 30-year fixed-mortgage rate jumped from 5.98% in late February to 6.46% at the start of April. Additionally, 62% of builders reported suppliers had increased building material costs due to higher fuel prices.

  • The NAHB/Wells Fargo Housing Market index was released on April 15, 2026.
  • Mortgage rates averaged 5.98% in late February and jumped to 6.46% at the start of April.

The players

NAHB

The National Association of Home Builders is a trade association that represents the home building industry in the United States.

Bill Owens

The current Chairman of the National Association of Home Builders.

Robert Dietz

The chief economist for the National Association of Home Builders.

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What they’re saying

“The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market.”

— Bill Owens, NAHB Chairman

“Energy costs make up approximately 4% of residential construction material input and service costs. With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs.”

— Robert Dietz, NAHB Chief Economist

What’s next

The NAHB will continue to monitor the impact of the Iran war, rising energy costs, and consumer confidence on the U.S. housing market in the coming months.

The takeaway

The drop in homebuilder sentiment reflects broader economic headwinds facing the U.S. housing market, including higher material costs, mortgage rates, and declining consumer confidence - all of which could slow the pace of new home construction and sales in the near future.