Builder confidence remains low in August

Plus: Newrez pays $2.3M to settle Caliber overcharge allegations

August 20, 2025

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Disclaimer: Average mortgage rates as of August 19, 2025. © MND Daily Rate Index.

1. Builder confidence remains low in August

Elevated mortgage rates, weak buyer traffic and ongoing supply-side challenges continued to act as a drag on builder confidence in August, as sentiment levels remain in a holding pattern at a low level.

Builder confidence in the market for newly built single-family homes was 32 in August, down one point from July, according to the National Association of Home Builders Housing Market Index.

Builder sentiment has now been in negative territory for 16 consecutive months and has hovered at a relatively low reading between 32 and 34 since May.

“Builders are grappling with supply-side headwinds, including ongoing frustrations with regulatory policies connected to developing land and building homes” NAHB Chairman Buddy Hughes said

2. Newrez pays $2.3M to settle Caliber overcharge allegations

Newrez LLC has agreed to a $2.3 million settlement stemming from overcharge violations by Caliber Home Loans, a mortgage lender it acquired in 2021.

California regulators said Caliber improperly charged borrowers per diem interest on nearly 5,000 loans between 2012 and 2019, totaling $550,316. The company refunded customers with interest and will pay $1.8 million in penalties as part of the settlement, the state’s Department of Financial Protection and Innovation said.

“This penalty holds Caliber accountable and returns interest to California borrowers,” DFPI Commissioner KC Mohseni said.

Caliber, once among the country’s top mortgage originators, will surrender its California licenses as part of the resolution. Newrez, which acquired Caliber for $1.7 billion, said the matter involves pre-acquisition activity and “does not affect Newrez’s operations in California.”

3. More Nuggets

📝 Forged deed and mortgage fraud cost Georgia couple their home. (Wsb.Tv)

💰 Mortgage bankers return to profit in Q2 2025, averaging $950 per loan. (MBA)

🆕 Motto Mortgage & wemlo appoint former Guaranteed Rate Affinity COO as new President of Mortgage Services. (PR Newswire)

🤝 The Bank of Glen Burnie acquires VA Wholesale Mortgage. (GlobeNewswire)

🏘️ Homes are selling at slowest summer pace in a decade. (Redfin)

⚖️ New real estate investigation on ‘deceptive practices’ launched. (MorningStar)

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4. Warren Buffett’s Berkshire bets big on homebuilders

Warren Buffett’s Berkshire Hathaway has taken a nearly $1 billion bet on the nation’s homebuilding industry, scooping up stakes in Lennar Corp. and D.R. Horton Inc. in a show of faith for a sector struggling under high mortgage rates.

  • The Omaha conglomerate disclosed in a securities filing Thursday that it owned about $800 million worth of Lennar shares and $191.5 million in D.R. Horton stock as of June 30.

The news sparked rallies in both builders’ shares. Lennar is now up more than 7% this year, while D.R. Horton has climbed 22%.

“Berkshire investing in homebuilding is a boost of confidence for new home supply in the U.S.,” said Joel Berner, senior economist at Realtor’com. “The country is facing a housing shortage of nearly 4 million homes, and the only solution is for someone to build them.”

5. HUD to adopt English-only policy

The Department of Housing and Urban Development will implement an English-only policy for nearly all services and materials, according to an internal memo obtained by the New York Post. The move follows President Trump’s executive order declaring English the nation’s official language.

Deputy Secretary Andrew Hughes wrote that the shift is meant to unify HUD’s communications: “We are one people, united, and we will speak with one voice and one language.” The department will remove non-English flyers, digital content, and translation services previously offered in more than 200 languages.

Exceptions will apply under federal nondiscrimination laws, including the Americans with Disabilities Act, though officials said the rollout will be “ongoing and iterative.”

☀️ You’re all caught up. See you on Friday!

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