Understanding the Latest Housing and Economic Updates: What It Means For You

Home Builder Confidence Rises for the First Time in Months

There’s some good news in the housing market! Home builder confidence rose in October to its highest level since April, according to the National Association of Home Builders (NAHB). The index climbed five points to 37, breaking a months-long stretch of little movement.

While the number still falls below 50, the level that signals growth, this increase shows signs of renewed optimism. Builders are feeling more confident about the future, especially as mortgage rates start to ease and affordability improves slightly.

All three areas of the index saw gains:

• Buyer traffic rose to 25
• Current sales increased to 38
• Future sales expectations climbed above 50 for the first time since January

According to NAHB Chief Economist Robert Diaz, this rise is “a positive signal for 2026,” suggesting we could see more single-family home construction in the year ahead.

Bottom line: Easing mortgage rates are giving builders and buyers a bit of breathing room. While challenges remain, this trend points toward slow but steady improvement in the housing market.

What’s Going On in the Economy: The Fed’s Beige Booke

Every few weeks, the Federal Reserve releases what’s known as the Beige Book, a report that gives a snapshot of economic conditions across the country. Normally, the Fed uses this along with other reports (like inflation and employment data) to guide decisions about interest rates.

However, due to a government dela, the Beige Book has become even more important.

Here’s what it shows:

• Overall economic activity has stayed mostly the same.
• Consumer spending has slowed, especially for middle- and lower-income households.
• Prices are still rising, forcing many businesses to choose between raising prices or absorbing costs.
• Employment is stable overall, but more companies are cutting back through layoff or not replacing open positions.

This information will help guide the Fed as it decides whether to cut interest rates again later this month. Many experts expect another small rate cut as the job market softens and inflation remains slightly about 2% target.

Quick reminder: the Fed’s rate decisions don’t directly set mortgage rates, but they do influence them, along with other economic factors.

What This Means for You

If you’re thinking about buying or refinancing a home, these trends could work in your favor. Lower rates and improved builder confidence may lead to more options and better affordability down the road.

At TEG Federal Credit Union, we’re here to help you understand how these changes impact your personal finances, whether you’re a first-time homebuyer, looking to refinance, or just keeping an eye on the market.

💡Tip: If mortgage rates continue to ease, it might be a great time to check if refinancing could save you money.

Stay Informed. Stay Confident.

TEG Federal Credit Union is always here to help you make smart financial decisions that support your goals, today, and in the future.

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