12:40 PM EDT, 09/16/2025 (MT Newswires) -- US homebuilder confidence held steady this month, though future sales projections reached a six-month high amid lower mortgage rates and prospects of monetary policy easing by the Federal Reserve, according to National Association of Home Builders and Wells Fargo data released Tuesday.

The housing market index, which covers new single-family homes, remained unchanged sequentially at 32 in September. The consensus was for an increase to 33 in a survey compiled by Bloomberg.

The index gauging sales expectations over the next six months rose to 45 this month from 43 in August, representing the highest reading since March, according to the NAHB survey. Current sales conditions held steady at 34, while the measure charting prospective buyers declined by one point to 21.

"While builders continue to contend with rising construction costs, a recent drop in mortgage interest rates over the past month should help spur housing demand," NAHB Chairman Buddy Hughes said.

Over the last four weeks, the 30-year fixed rate mortgage average is down 23 basis points to 6.35%, NAHB Chief Economist Robert Dietz said, citing Freddie Mac data. "This is the lowest level since mid-October of last year and a positive sign for future housing demand," Dietz added.

Markets widely expect the central bank's Federal Open Market Committee to lower its benchmark lending rate by 25 basis points Wednesday, according to the CME FedWatch tool. The move is expected to help reduce interest rates for builder and developer loans, according to Dietz.

About 39% of homebuilders cut prices in September, up from 37% last month. The average price reduction was 5%, the same as it's been since November, the survey showed.

Last week, government data showed that consumer inflation in the US accelerated at the fastest pace in seven months in August, while the annual core rate remained above 3%.