Builder Confidence Trending Higher as Interest Rates Move Lower
The HMI index gauging current sales conditions for newly built single-family homes increased two points to 73, and the component measuring traffic of prospective buyers rose two points to 50.
Builder confidence in the market for newly built single-family homes rose one point to 66 in August, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Sentiment levels have held at a solid 64-to-66 level for the past four months.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” Greg Ugalde, NAHB chairman and a home builder and developer from Torrington, Conn.