---
title: "Builder confidence falls to 32 as more builders cut prices"
url: "https://etf.net/news/builder-confidence-falls-to-32-as-more-builders-cut-prices-2026-09-16"
published_at: "2026-09-16T15:18:26.043Z"
updated_at: "2026-09-16T15:18:26.043Z"
byline: "ETF.net Research"
---

# Builder confidence falls to 32 as more builders cut prices

The NAHB/Wells Fargo Housing Market Index fell three points to 32 in September 2026, and 38% of builders cut prices.

By ETF.net Research. Published Sep 16, 2026.

More builders are cutting prices to make a sale. **38%** reduced prices in September, up from 35% in August, and the average cut stayed at **6%** for a sixth consecutive month, the National Association of Home Builders said Wednesday. **66%** used sales incentives, up from 63% in August and the highest share since 67% in December 2025.

The NAHB/Wells Fargo Housing Market Index, scored from 0 to 100, fell three points to **32**. A reading above 50 means more builders view conditions as good than poor. In August, NAHB chief economist Robert Dietz said the index had been below 40 for 16 consecutive months, after a stretch the association in July called the longest since 2012. September’s 32 remains in that range.

Sales expected over the next six months fell six points to 37, the largest drop among the three components of the index, and below the 45 reading in September 2025. Freddie Mac’s 30-year fixed-rate mortgage averaged **6.76%** as of September 10, up from 6.71% the prior week and 6.35% a year earlier. Barron’s said that as mortgage rates rise, builders use incentives to boost home sales at the expense of their margins.

As of 10:51 a.m. Eastern, the U.S. home-construction fund ITB was at $89.76, up **0.72%**, and the fund that tracks the S&P Homebuilders Select Industry Index, XHB, was at $98.29, up 0.54%. D.R. Horton, 16.8% of ITB, was up 1.5%. Wednesday’s survey has not moved those prices.

Chart: ITB and XHB **fell** to a Sept. 10 low, then bounced

Over the past month, ITB has a total return of **-7.6%** and XHB of **-9.2%**. The Federal Reserve announces its rate decision at 2 p.m. Eastern. Zacks Investment Research said homebuilders are among the groups that face pressure under a hike, which would be the [first increase since 2023](https://etf.net/news/the-fed-meets-wednesday-with-an-85-chance-of-the-first-hike-since-2023-2026-09-13).

Source: etf.net, https://etf.net/news/builder-confidence-falls-to-32-as-more-builders-cut-prices-2026-09-16. Please cite the page URL.