The housing market has been struggling for years, but it has come under renewed pressure following a rapid increase in mortgage rates over the last couple of months. And cracks are spreading in every part of the market…
Homebuyers are canceling sales at near-record rates
YahooFinance, October 19, 2026
Home Builder sentiment regarding the current and near-term outlook for housing has plunged as the National Association of Home Builders (NAHB) Builder Confidence Index dropped to 29 – the lowest level since 2012. Any reading below 50 indicates widespread pessimism, and this latest collapse is a major cause for concern.
The latest NAHB report also showed that the traffic of prospective buyers collapsed to the level it was just prior to the Great Financial Crisis in 2007-09. This occurred despite record high incentives as 43% of builders cut prices in October, the highest share during the 2020-2026 period.
The existing home market is also seeing significant problems as the Pending Home Sales Index plummeted to the lowest level on record. This indicates the housing market has essentially screeched to a halt!
As the housing market picture continues to worsen, these reports raise warning flags that this could be setting the stage for another major housing crisis. If that occurs, it would have wide-reaching effects on consumers, the economy, and the financial markets.