Builders Upbeat This Holiday Season
Noting a strong finish to a record-breaking year for home sales, builder confidence in the new-homes marketplace remained unchanged in December from an upwardly revised reading of 70 in November, according to NAHB’s monthly Housing Market Index (HMI).
“Buyer demand is holding up well this holiday season, and single-family builders are pleased to be ending the year on such a high note,” said NAHB President Kent Conine.
“Looking forward, builders remain quite optimistic but are expressing some concern about the possibility of higher interest rates as the economic expansion continues,” said NAHB Chief Economist David Seiders. That decline was responsible for some slippage in the future expectations component of the index in December.
NAHB is projecting that rates on long-term mortgages will rise gradually in 2004, approaching 6.5% by mid-year.