|
March Finds No Loss in Builder Confidence
A modest increase in home mortgage rates over the past month hasn’t dampened builder confidence in the strength of the market for new single-family homes, according to the latest NAHB/Wells Fargo Housing Market Index (HMI), which was released on March 15. The index remained unchanged this month from an upwardly revised level of 69 in February.
“Robust buyer demand continues to sustain the new-home market, with no sign of letting up in the near future,” said NAHB President Dave Wilson. “Many builders are solidly optimistic about their prospects in coming months.”
“Builders have good reason for confidence even as interest rates gravitate upward,” agreed NAHB Chief Economist David Seiders. “Demand for new homes still exceeds supply in many markets, while financing conditions remain quite favorable and jobs and incomes are on the rise.”
The average interest rate on long-term mortgages rose about 25 basis points between the February and March HMI survey periods.
Derived from a monthly survey that NAHB has been conducting for nearly 20 years, the index asks builders for their assessments of current single-family sales, prospects for sales in the next six-months and the traffic of prospective buyers. Any number over 50 indicates that more builders view sales conditions as good than poor.
HMI readings this month for both current and future sales remained unchanged from revised February levels of 76 and 79, respectively, while the component of the index gauging buyer traffic edged up by a single point to 51.
“The fact that the HMI has remained at such a high level and within the same two-point range throughout the past six months is a reflection of the ongoing stability and strength of the nation’s housing market,” said Seiders.
On a regional basis, the index rose six points to 74 in the Northeast and four points to 83 in the West. The South recorded a one-point decline to 73, and the Midwest, where the job market remains relatively weak, declined two points to 53.
Register Today for the Spring Construction Forecast Conference
See what's on the horizon for the housing industry at NAHB's Spring Construction Forecast Conference
on May 5 in Washington, D.C. Get the latest forecasts on housing starts, projected budgets and other economic bellwethers and developments in the housing industry from some of the country's premier economists and finance experts. To register or for more information, click here.
‘HousingEconomics Online’ Provides In-Depth Analysis of Housing Market
NAHB’s Economic Group has produced a new, comprehensive Web-based publication, “HousingEconomics Online,” which provides subscribers with expert, in-depth analysis of economic and housing market trends as well as the latest housing and economic data.
“HousingEconomics Online” is updated regularly and combines scientific research with practical applications in order to provide housing-oriented insights for builders, manufacturers and housing finance professionals and assist in their business planning.
Available at two levels — Pro and Executive, subscribers can choose the level that best meets their needs. To learn more or subscribe to “HousingEconomics Online,” visit www.housingeconomics.com.
|
