The bill contains certain provisions for housing that benefit real estate developers and homeowners.
Confidence among home builders regarding future sales expectations increased this month after President Donald Trump signed the One Big Beautiful Bill Act (OBBB) , the National Association of Home Builders (NAHB) said in a July 17 statement.
The NAHB/ Wells Fargo Housing Market Index (HMI), which tracks and gauges the pulse of the single-family housing market, rose by one point from June to hit the 33 level in July, said the statement.
A reading below 50 is an indication of less optimism among builders. Builder sentiment has remained in negative territory for 15 straight months, NAHB said.
The one-point improvement in July signals an improvement in sentiment.
“The passage of the One Big Beautiful Bill Act provided a number of important wins for households, home builders, and small businesses,” said NAHB Chairman Buddy Hughes.
Trump signed the OBBB into law on July 4. The bill contains certain provisions for housing that benefit real estate developers and homeowners. For instance, it sets aside $1 billion for the “sustainment, restoration, and modernization” of military unaccompanied housing for the Army, Navy, the Air Force, and the Space Force.
Another OBBB provision raises the state and local tax deduction cap from $10,000 to $40,000 for tax years 2025–2029. As such, taxpayers can now deduct up to $40,000 of state and local tax payments, such as property taxes, from their federal taxable income.
“While this new law should provide economic momentum after a disappointing spring, the housing sector has weakened in 2025 due to poor affordability conditions, particularly from elevated interest rates,” Hughes said.
The average weekly rate on a 30-year fixed-rate mortgage has remained above the 6 percent level consistently since mid-September 2022, according to data from Freddie Mac. Since the beginning of the year, rates have remained above the 6.5 percent level.
Mortgage rates are significantly influenced by the federal funds rate, which the Federal Reserve has hesitated to bring down. Since December, the Fed has kept interest rates unchanged in a range of 4.25 to 4.5 percent.
