With interest rates flat, builder sentiment was up four points to 62 in the second month of 2019, according to the latest index data from the National Association of Home Builders.
A year ago, the reading was at 71. Builder confidence dropped at the end of 2018 as a result of interest rate hikes in the fall, pushing up overall costs, CNBC reports. Says NAHB Chairman Randy Noel, "Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment," adding, "In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season."
Of the index's three components, buyer traffic moved up 4 points to 48. Current sales conditions rose 3 points to 67, and sales expectations over the next six months increased 5 points to 68. February marks the second month where all three of the indexes showed gains. Sales of newly built homes have been hard to read, due to the recent government shutdown and delays in reporting from the U.S. Census.
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