“Homebuilders are slashing prices,” a headline on CNBC blares, while the real estate website Redfin touts there’s “good news for homebuyers” as sellers lower how much money they want for their houses.
Here’s what’s behind the CNBC headline:
- New home prices were reduced by 38% of builders in July, according to the National Association of Home Builders monthly survey.
- The share of builders cutting prices is at the highest level since the association started tracking the metric in 2022, and compares to just 29% in April.
- The amount of the average price cut was 5% in July. Builders are also offering incentives.
- Builder confidence in the market for single-family homes edged up a single point after the passage of President Donald Trump’s tax and spending cuts bill, the association said, but has remained “in negative territory for 15 consecutive months.”
The news comes as concerns about the U.S. economy, fueled by Trump’s changing tariff policies, have made people in Utah and across the country hesitate when it comes to making big purchases, like homes.
That uncertainty, along with mortgage rates hovering close to 7%, “continue to act as headwinds for the housing sector,” the National Association of Home Builders concluded, noting “the housing sector has weakened in 2025 due to poor affordability conditions.”
When it comes to existing homes, Seattle-based Redfin suggested sellers are adjusting to a buyer’s market:
- The median U.S. home sold for just over $401,000 during the four weeks ending July 13, while the nation’s median asking price was $407,000.
- Still, that asking price was up 2.9% year over year. But it was the smallest increase in more than four months.
- The median sale price rose, too, 1.7% year over year.
- New listings are “losing steam,” falling nearly 1% year over year, the biggest drop since the start of 2025.
The weekly average 30-year fixed-rate mortgage was reported Thursday at 6.75% by the Federal Home Loan Mortgage Corporation, better known as Freddie Mac. That’s up 0.03 percentage points from the previous week, but the average rate is down slightly from a year ago.
“The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%,” the Freddie Mac site said. “While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act.”