The article highlights the adverse impact of policy uncertainty on builder confidence in residential construction, primarily influenced by ongoing trade tariffs. Despite some positive developments in trade relations with the UK and China, most builders report challenges in pricing homes due to fluctuating material costs. Mortgage rates near 7% also hinder performance, as builders fare better at around 6%. While existing home sales show significant year-over-year growth, new home sales remain stagnant relative to pre-pandemic levels, contributing to dwindling confidence among builders.
âPolicy uncertainty stemming in large part from the stop-and-start tariff issues has hurt builder confidence but initial trade arrangements are a welcome development.â
â78% reported difficulties pricing their homes recently due to uncertainty around material prices.â
âMortgage rates are currently near 7%. Builders perform better when rates are around 6%, highlighting a key concern in the current market.â
âWhile existing home sales have seen positive growth recently, new home sales remain at 2019 levels, contributing to fading builder confidence.â
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