In Late-Q3, a builder-confidence index fell 3 points to 32. Current sales conditions slipped to 35, while six-mo sales expectations dropped to 37.
Prospective buyer traffic held at 23. Meanwhile, 38% of builders nationwide cut prices, and two-thirds used incentives, up from 63% in Mid-Q3.
Mortgage applications for new-home purchases declined for a fifth straight mo in Mid-Q3 as avg. 30-yr rates hovered in the high-6% range.
Large builders kept leaning on builder-paid rate buydowns, helping buyers secure below-market mortgages and supporting sales without relying solely on broader new-home price cuts.
With 30-yr rates near 7% in Late-Q3, two housing forecasters expected them to stay in the high-6% range or higher through 2027.
