In response to the weakening demand from homebuyers in the current economy, 38% of homebuilders said they cut prices in the month of July. Alongside builders buying down mortgage rates, the average price reduction has steadily dropped since November as higher interest rates and poor affordability dampened the housing market through the first half of 2025. Nevertheless, confidence has momentarily rebounded thanks to the budget bill passed earlier this month, leaving it up to builders to take initiative in creatively maneuvering through a difficult market.
Homebuilders are slashing prices at the highest rate in three years
