FX.co ★ US Homebuilder Sentiment Remains Subdued Due to Tariffs

In April 2025, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index in the United States edged up to 40, an increase from 39 in March and surpassing expectations of 37. This gain in confidence comes amid a backdrop of economic uncertainty fueled by concerns over tariffs and heightened building material costs, which continue to weigh on builder sentiment. Nonetheless, a slight reduction in mortgage interest rates in recent weeks has likely contributed to this modest rise in builder confidence. Notably, 60% of builders have reported that their suppliers have either already increased or announced plans to hike material prices due to tariffs. On average, these price increases amount to 6.3%, reflecting reactions to announced, implemented, or anticipated tariffs. Consequently, builders estimate that recent tariffs add approximately $10,900 to the cost of constructing a typical home. Moreover, the subindex evaluating current sales conditions improved by two points to 45, while the measure tracking prospective buyer traffic rose by one point to 25. However, the component assessing sales expectations over the next six months decreased by four points to 43.