Builder confidence in the U.S. housing market rose to 41 in September, a two-point increase from August, marking the first positive outlook for future new home sales since May 2024, according to the NAHB/Wells Fargo Housing Market Index. This uptick is attributed to falling mortgage rates, with the average 30-year fixed mortgage rate recently declining to 6.20%. Despite the rise in confidence, builders continue to face challenges from elevated construction costs and increased competition due to a rising existing home inventory. The share of builders cutting prices dropped for the first time since April, with the average price concession falling to 5%. As the Federal Reserve prepares to ease monetary policy, downward pressure on mortgage interest rates may further improve builder sentiment. However, overall market conditions remain cautious, with any index reading below 50 indicating more negative than positive views among builders.