Rates continue to mortgage rates remain high, and this, combined with the uncertainty surrounding the U.S. economy, is undermining consumer confidence and having a direct impact on construction companies. The Home Builders Confidence Index Home Confidence Index, released by the National Association of Home Builders in collaboration with Wells Fargo for the month of June, fell by an additional two points compared to May, settling at 32 points. Any level below 50 points is considered negative, while the index stood at 43 points in June 2024.

Analysts had expected a slight improvement in the index, driven by an anticipated easing of the tariff dispute and conciliatory steps by President Donald Trump’s administration, but the figures fell short of expectations. Since 2012, the index has recorded levels lower than this June’s reading only twice: in December 2022, following the sharp spike in mortgage rates after the COVID-19 pandemic, and in April 2020, at the onset of the pandemic.

Bodie Hughes, president of the association and a builder in Lexington, North Carolina, says: «Buyers are increasingly holding back due to the rising cost of borrowing, uncertainty surrounding tariffs, and concerns about the future of the economy. To attract hesitant customers, a growing number of builders are resorting to price cuts.»

A June survey showed that 37 % of builders offered price discounts—the highest percentage since tracking began three years ago—compared to 34 % in May and 29 % in April. The average discount was about 5 %, a figure that has remained nearly unchanged since the end of last year.

This challenging climate coincided with an announcement by Linar, one of the largest housing developers in the United States, announcing quarterly results that showed the average home sales price fell by about 9 % in the second quarter compared to the same period in 2024, while the company’s forecasts for new orders and deliveries fell short of analysts« estimates.