Home Builders’ Confidence Rises More Than Expected to 20-Month High

Press Release
Builder confidence in the market for single-family homes rose in October to hit a 20-month high, with the National Association of Home Builders’ key gauge of perceptions beating market expectations.The NAHB/Wells Fargo Housing Market Index rose three points to 71 for this month from an unrevised print of 68 for last month to reach its highest level since February 2018, data showed on Wednesday. The consensus compiled by Econoday was for 68.

“The second half of 2019 has seen steady gains in single-family construction and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints about a slowing economy.”

The Mortgage Bankers Association said earlier Wednesday that the average contract interest rate for 30-year fixed-rate mortgages with loan balances of $484,350 or less rose to 3.92% last week from 3.9% in the week ended Oct. 4.

“The housing rebound that began in the spring continues, supported by low interest rates, solid job growth and reduction in new home inventory,” said NAHB Chairman Greg Ugalde.

The index that measures current sales conditions rose three points to 78 while the gauge of traffic prospective buyers rose four points to 54. Sales expectations in the next six months rose six points to 76.

Regionally, the index rose three points to in the west to 78 and three points in the south to 73. The measure rose one point in the northeast to 60 and one point in the midwest to 58.

This post was originally published on Health Opinion

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