U.S. Builder Sentiment Hits 12-Month Low | For more info please visit me here: https://hansoregonhomes.com/

Builder confidence has dipped to its lowest point in a year, with the latest index dropping 3 points to 32 in late Q3. Sales conditions are also feeling the pressure, holding at 35, and expectations for the next six months have slipped to 37. Prospective buyer traffic remains steady at 23, but more builders are adjusting—38% nationwide have cut prices, and incentives are now being used by two-thirds, up from 63% earlier in the quarter. It’s clear the current mortgage environment is playing a major role, with average 30-year rates still in the high-6% range and applications for new-home purchases falling for the fifth month in a row. Large builders continue to make use of rate buydowns to help buyers secure below-market mortgages, which is keeping some momentum in sales without relying solely on price cuts. Forecasts suggest we could see these higher rates persist through 2027. As someone guiding buyers and sellers here in Salem and the Willamette Valley, I keep a close eye on how national trends shape our local real estate landscape, so my clients can make informed decisions in a shifting market.