Builder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the NAHB/Wells Fargo Housing Market Index (HMI). Persistent affordability challenges, including high housing price-to-income ratios and elevated land and construction costs, helped push builder confidence lower for the second straight month to start the year. Housing affordability remains an ongoing challenge at the start of 2026. …On the positive side, easing inflation should continue to allow lower interest rates for mortgages and builder loans. …Although demand for new construction has weakened, remodeling demand has remained solid given a lack of household mobility, per comments from builders in the HMI. …The HMI index gauging current sales conditions held steady at 41 from January to February, the index measuring future sales fell three points to 46 and the gauge charting traffic of prospective buyers fell two points to 22.