-- The National Association of Home Builders' monthly housing market index fell to a reading of 34 in April from a revised reading of 38 in March, compared with expectations for a smaller decrease to a 37 print in a survey compiled by Bloomberg as of 7:40 am ET.
The index was below a reading of 40 a year earlier and is at the lowest level since September 2025.
The readings for single-family sales, six-month outlook, and buyer traffic all declined.
"Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty," said NAHB Chairman Bill Owens. "The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market."
Higher oil prices boosted building materials costs, NAHB Chief Economist Robert Dietz noted.
"Energy costs make up approximately 4% of residential construction material input and service costs," said Dietz. With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs."