From the Desk - Economic Commentary
Scott Goedken, Institutional Strategies Director - 10/19/2026
This morning the National Association of Home Builders released the October update to the NAHB/Wells Fargo Housing Market Index. The index fell to 29 in October from 32 in September and fell below expectations. Builder sentiment reached its lowest level since June 2012 as higher mortgage rates, rising energy and construction costs, labor constraints, and weaker buyer traffic weighed on the outlook for new home construction. The index measuring current sales conditions declined to 33 from 35, expected sales over the next six months fell to 32 from 37, and prospective buyer traffic dropped to 18 from 23. Builders also reported increased use of price cuts and sales incentives to support demand.
Markets are mixed this morning. Treasury yields are higher, oil prices are slightly lower but remain elevated, and equity markets are opening higher. Energy prices were a significant contributor to last week's inflation reports and remain an important area to watch. Fed funds futures continue to assign a low probability to a rate hike at next week's FOMC meeting but still favor additional tightening by year-end.
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