{"id":231670,"date":"2025-09-16T15:29:09","date_gmt":"2025-09-16T15:29:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/231670\/"},"modified":"2025-09-16T15:29:09","modified_gmt":"2025-09-16T15:29:09","slug":"homebuilders-hope-a-fed-rate-cut-will-revive-market-as-their-reliance-on-price-cuts-deepens","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/231670\/","title":{"rendered":"Homebuilders Hope a Fed Rate Cut Will Revive Market as Their Reliance on Price Cuts Deepens"},"content":{"rendered":"

Homebuilder sentiment remained dour this month as their reliance on price cuts<\/a> increased, leaving many hoping a Federal Reserve rate cut<\/a> this week will revive the housing market.<\/p>\n

In September, 39% of builders reported cutting prices in September, up from 37% the prior month<\/a> and the highest percentage in more than five years, according to the National Association of Home Builders (NAHB)\/Wells Fargo Housing Market Index<\/a> (HMI) released on Tuesday.<\/p>\n

The average price reduction reported by homebuilders was 5% this month, where it has held steady since November.<\/p>\n

Overall builder confidence in the current market for newly built single-family homes remained low in September at a reading of 32, unchanged from August. Anything below 50 reflects negative homebuilder sentiment about the market.<\/p>\n

However, when asked about their outlook on the market in coming months, builders expressed optimism that a more favorable interest rate climate could bring hesitant buyers off the sidelines in the final quarter of 2025.<\/p>\n

The HMI index gauging future sales expectations in September rose two points to 45, the highest reading since March of this year.<\/p>\n

\u201cWhile builders continue to contend with rising construction costs, a recent drop in mortgage interest rates<\/a> over the past month should help spur housing demand,\u201d says NAHB Chairman Buddy Hughes<\/strong>.<\/p>\n

Mortgage rates have been falling in recent weeks in anticipation that the Fed will cut its benchmark overnight interest rate on Wednesday, marking the central bank’s first rate cut in nine months.<\/p>\n

Average rates on 30-year fixed home loans dropped to 6.35% last week, an 11-month low, according to Freddie Mac<\/a>.<\/p>\n

“This is the lowest level since mid-October of last year and a positive sign for future housing demand,” NAHB Chief Economist Robert Dietz<\/strong> says of the latest mortgage rate average.<\/p>\n

In addition to the recent easing in mortgage rates, a lower Fed rate will help lower borrowing costs for homebuilder and developer loans, says Dietz.<\/p>\n

Developing story, more to follow.<\/p>\n","protected":false},"excerpt":{"rendered":"Homebuilder sentiment remained dour this month as their reliance on price cuts increased, leaving many hoping a Federal…\n","protected":false},"author":3,"featured_media":231671,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,8166,19549,135,14606,124877,124876,67,132,68],"class_list":{"0":"post-231670","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-housing-market","10":"tag-interest-rate","11":"tag-markets","12":"tag-mortgage-rates","13":"tag-nahb","14":"tag-national-association-of-home-builders","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115214690765773830","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/231670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=231670"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/231670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/231671"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=231670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=231670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=231670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}