Home builder confidence remained near historic lows in August, with the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index falling one point to 32, marking the 16th consecutive month of negative sentiment.

The August reading reflects persistent challenges facing the housing industry, including elevated mortgage rates, minimal buyer traffic, and ongoing supply-side constraints. Builder confidence has remained stagnant between 32 and 34 since May, indicating a market stuck in a prolonged downturn.

"Affordability continues to be the top challenge for the housing market and buyers are waiting for mortgage rates to drop to move forward," said NAHB Chairman Buddy Hughes. Builders are simultaneously battling regulatory hurdles connected to land development and home construction that further complicate the supply situation.

Market softness is evident in builder pricing strategies, with 37% of builders cutting prices in August and average reductions holding steady at 5%. Sales incentives reached 66% in August—the highest level in the post-COVID period—as builders work to attract hesitant buyers.

NAHB Chief Economist Robert Dietz called for Federal Reserve intervention, stating that "given a slowing housing market and other recent economic data, the Fed's monetary policy committee should return to lowering the federal funds rate."

Regional confidence showed mixed results, with the Midwest gaining one point to 42 while the South and West each dropped one point to 29 and 24, respectively. The Northeast fell to 44, with all regions remaining below the 50-point threshold that indicates positive market conditions.