Builder Confidence Holding Strong and Steady in November
The continuation of low mortgage rates and improving economic conditions are helping maintain a solid level of builder confidence in the market for new single-family homes, according to the latest NAHB/Wells Fargo Housing Market Index (HMI).
The November HMI registered no discernible change in builder attitudes following an impressive four-point jump that lifted the index to its highest level of the year — 71 — in October.
“While rates on long-term mortgages have edged up marginally in the last few weeks, the average 30-year loan remains below 6%,” said NAHB President Bobby Rayburn. “That’s a key factor driving buyer demand right now.”
“The basic story hasn’t changed,” agreed NAHB Chief Economist David Seiders. “As of the end of October, the average interest rate on a 30-year mortgage was 5.64%. That moved up slightly to 5.76% as of mid-November — still an exceptionally attractive rate. The result is builders’ continued confidence in the momentum of this housing market.”