Key Facts
• In September, US homebuilder sentiment remained at a multi-year low, unchanged from August.
• The sentiment index has stayed in the low 30s since May 2025.
• Current sales conditions index held steady at 34, while prospective buyer traffic fell by 1 point to 21.
• Six-month sales outlook rose by 2 points to 45, the highest since March 2025.
• Mortgage rates dropped to their lowest level in nearly a year, reflecting Federal Reserve rate cut expectations.
• 39% of builders reported price reductions, the highest since the COVID-19 pandemic.
• 65% of builders used sales incentives, maintaining a high level.
• Regional sentiment: South remained at its lowest since 2012, West and Midwest slightly declined, while the Northeast saw its largest increase since January 2025.
Summary
US homebuilder sentiment in September 2025 remained at a multi-year low, reflecting ongoing challenges in the housing market despite a drop in mortgage rates. The sentiment index has been stagnant in the low 30s since May, with current sales conditions unchanged at 34 and prospective buyer traffic slightly declining. However, the six-month sales outlook improved to 45, the highest since March, driven by expectations of Federal Reserve rate cuts. Builders reported increased use of price reductions and sales incentives, with 39% and 65% participation, respectively. Regionally, the South stayed at its lowest sentiment since 2012, while the Northeast experienced a notable rebound. These trends highlight persistent market struggles despite favorable mortgage rate movements.
