Home builder confidence in the new, single-family construction market has climbed back up in the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index reading for August was 68, up four points from July. An above-50 reading indicates more builders have a positive outlook than a negative one.
“Our members are encouraged by rising demand in the new-home market,” said Granger MacDonald, chairman of the NAHB, in a statement. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.”
Home builders’ expectations regarding present and expected single-family home sales both rose in August, up four points to 74 and five points to 78, in order, while expected homebuyer traffic rose one point to 49.
“The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market,” said Robert Dietz, chief economist at the NAHB. “GDP growth improved in the second quarter, which helped sustain housing demand; however, builders continue to face supply side challenges, such as lot and labor shortages and rising building material costs.”
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