Mortgage Services

Builder confidence fell sharply in April as rising costs and economic uncertainty weighed on sentiment heading into the spring buying season. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) dropped four points to 34 , its lowest level since September 2025. The decline marks a notable setback after modest gains in recent months, with sentiment remaining firmly below the breakeven level of 50 that separates positive from negative market conditions. All three major components of the index moved lower. The gauge of current sales conditions fell four points to 37 , while the index measuring future sales expectations dropped seven points to 42 . The component tracking prospective buyer traffic declined three points to 22 , reflecting continued softness in demand. “Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty,” said NAHB Chairman Bill Owens. He added that geopolitical risks and rising energy costs have further dampened confidence and slowed expected momentum in the housing market. NAHB Chief Economist Robert Dietz pointed to increasing pressure from higher fuel prices, noting that a majority of builders are seeing rising material costs as a result. He also highlighted that uncertainty around input costs is making it more difficult for builders to price homes, adding another layer of strain on the market.

Mortgage applications ticked higher last week, reversing recent declines as easing rates provided a modest boost to activity. The Mortgage Bankers Association (MBA) reported a 1.8% increase on a seasonally adjusted basis for the week ending April 10. Refinance activity led the gain, with the Refinance Index rising 5% from the previous week and now sitting 15% above year-ago levels. The increase follows a pullback in rates, which helped restore some borrower incentive after several weeks of weakening demand. Purchase activity remained soft, with the seasonally adjusted Purchase Index slipping 1% week over week. On an annual basis, purchase applications are down 3% , marking a second consecutive week of year-over-year declines as buyer hesitation persists. MBA’s Joel Kan said, " This dip in rates helped to support an increase in conventional refinance applications, which had declined for five consecutive weeks. Purchase activity remained subdued as potential homebuyers remained hesitant given the current economic uncertainty, which kept purchase applications below last year’s level for the second consecutive week..." Application composition shifted toward refinancing, with refinance share increasing to 45.5% from 44.3% the prior week. ARM share decreased slightly to 8.4% . FHA share fell to 18.2% , while VA share declined to 15.7% and USDA share held steady at 0.5% .

Existing-home sales pulled back in March, reversing February’s modest gains as affordability pressures and rising mortgage rates continued to weigh on buyer activity. Sales fell 3.6% to a seasonally adjusted annual rate of 3.98 million , slipping 1.0% below year-ago levels. “March home sales remained sluggish and below last year’s pace,” said NAR Chief Economist Lawrence Yun, pointing to weaker consumer confidence and softer job growth as ongoing headwinds. Inventory improved slightly, but concerns about demand persist. Total housing inventory rose to 1.36 million units , up 3.0% from February and 2.3% higher than a year ago, representing a 4.1-month supply of homes. “Inventory remains a major constraint on the market,” Yun said, noting that an additional 300,000 to 500,000 listings would help normalize conditions and ease pressure on buyers. Limited supply continues to support price growth. The median existing-home price climbed to $408,800 , up 1.4% year-over-year and marking the 33rd consecutive month of annual increases. Affordability showed mixed signals. The Housing Affordability Index dipped to 113.7 in March from 117.5 in February but remains above year-ago levels, with improvements recorded across all regions. Regional Breakdown (Sales and Prices, March 2026)