Economic conditions continue to keep the costs of a home loan higher, with the war in Iran, inflationary concerns and a slow but stabilizing job market serving as the key headwinds to a potential spring housing market surge.

NAHB HMI increased 3 points to 37 in May, but sentiment remains negative as affordability limits demand and incentives persist. Suppliers are raising prices, and construction input prices are up 6.2% in 2026 amid elevated oil and shipping costs.