Confidence among U.S. homebuilders fell to 35 in June, driven by persistent pressure from elevated mortgage rates and rising construction material costs, according to the latest sentiment index data.
The reading marked the 14th consecutive month the index has remained below the 40 threshold — a prolonged stretch that signals continued stress across the residential construction sector.
For prospective homebuyers, weak builder sentiment typically translates to fewer new housing starts and tighter inventory, factors that can push home prices higher even as affordability remains strained by borrowing costs. The trend is being felt across the Mountain West and Pacific Northwest, including Idaho, where new construction has been a primary driver of housing supply growth in recent years.
Analysts will be watching whether any easing in material costs or a shift in Federal Reserve policy could lift sentiment in the months ahead.
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