Builder Confidence Matches All-Time High on Record Traffic
The Housing Market Index now stands at its highest reading in the 35-year history of the series, matching the record that was set in December 1998.
Builder confidence in the market for newly built single-family homes increased six points to 78 in August, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The HMI now stands at its highest reading in the 35-year history of the series, matching the record that was set in December 1998.
“The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI,” said Chuck Fowke, NAHB chairman and a custom home builder from Tampa, Fla. “However, the V-shaped recovery for housing has produced a staggering increase for lumber prices, which have more than doubled since mid-April. Such cost increases could dampen momentum in the housing market this fall, despite historically low interest rates.”