The NAHB/Wells Fargo Housing Market Index fell 3 points to 32 in September, the lowest level since September 2025. Economists polled by Reuters had expected the index to drop to 34. Rising mortgage rates, labor shortages, and increased costs due to import tariffs were cited as the main reasons for the decline in confidence. Last week, the average 30-year fixed mortgage rate was 6.76%, a new high in over a year. Builders reported generally weaker buyer traffic, with more builders choosing to cut prices or offer sales incentives.