Homebuilder Sentiment Rises as Spring Housing Demand Improves
Real Estate News: Real Estate Investing Podcast
Kathy Fettke / RealWealth
4.5 • 546 Ratings
🗓️ 23 May 2026
⏱️ 3 minutes
🧾️ Download transcript
Summary
Homebuilder confidence improved in May as builders saw signs of stronger late spring housing demand, even with mortgage rates climbing back toward 6.6%. In this episode, Kathy Fettke breaks down the latest National Association of Home Builders sentiment report, what's driving renewed buyer activity, and why affordability challenges are still putting pressure on the housing market.
You'll also hear why fewer builders are cutting prices, how incentives are still shaping the new construction market, and which regions of the country are showing the most strength right now. For real estate investors, this episode highlights what builder sentiment could mean for housing supply, buyer demand, and investment opportunities in the months ahead
Source: https://www.cnbc.com/2026/05/18/may-homebuilder-sentiment-improves.html
Transcript
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| 0:00.0 | Home Builder confidence improved in May as builders saw signs of stronger late spring demand. |
| 0:05.5 | But affordability challenges and higher mortgage rates are still keeping pressure on the housing market. |
| 0:11.0 | I'm Kathy Fedke and this is real estate news for investors. |
| 0:16.8 | This is Real Estate News with Kathy Fedke. |
| 0:21.4 | Homebuilder's sentiment rose three points in May to 37. |
| 0:25.3 | That's according to the National Association of Home Builders Housing Market Index. |
| 0:29.8 | Economists had expected the number to stay flat after a sharp drop in April. |
| 0:34.3 | Keep in mind that a reading below 50 reflects that more builders view conditions as |
| 0:38.8 | poor than good, but this was still an improvement from last month. Builders are seeing signs of |
| 0:44.5 | stronger buying activity heading into the late spring market, even as mortgage rates move higher |
| 0:49.6 | again. According to Mortgage News Daily, the average rate on a 30-year fixed-rate mortgage is now 6.6%. |
| 0:57.0 | Higher rates, rising gas prices, and economic uncertainty tied to the conflict with Iran are still weighing on buyers. |
| 1:05.3 | NIHB chief economist Robert Dietz said recent increases in long-term interest rates continue to hold back demand. |
| 1:12.6 | He also noted that some regional markets, especially parts of the Midwest, are showing more strength than others. |
| 1:18.6 | The report showed gains across all three major components of the survey. |
| 1:23.6 | Current sales conditions rose to 40, buyer traffic increased to 25, and future sales expectations climbed to 45. |
| 1:32.0 | Builders also reduced price cuts slightly in May. About 32% of builders reported cutting prices, and that's down from 36% in April. |
| 1:41.1 | At the same time, incentives are still being used heavily. About 61% of |
| 1:46.3 | builders said they're offering incentives to attract buyers. For real estate investors, this is |
| 1:51.6 | an important trend to watch. Builder confidence is still weak overall, but demand has not |
| 1:56.7 | disappeared. And with existing home inventory still limited in many markets, an important part of the |
| 2:03.2 | housing supply picture. If mortgage rates ease later this year, buyer demand could strengthen further. |
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