The NAHB/Wells Fargo Housing Market Index, a gauge of US homebuilder confidence in newly built single-family homes, fell three points to 32 in September 2026 from 35 in August, below economists' forecast of 34 and the lowest reading since September 2025. Current sales conditions dropped four points to 35, six-month sales expectations fell to 37, and prospective buyer traffic was unchanged at 23. The decline reflected higher mortgage rates, labor shortages linked to increased immigration enforcement, and rising material costs associated with import tariffs. The average 30-year fixed mortgage rate rose to 6.76% last week from 6.71%, while the 10-year Treasury yield reached 5.041%, its highest level since July 2007. Builders faced weak buyer traffic, elevated home prices and a glut of unsold new homes. The share cutting prices rose to 38% from 35%, with average reductions holding at 6%, and the use of sales incentives increasing to 66% from 63%.