flexiblefullpage - default
Currently Reading

Builder Confidence Increases for First Time in 12 Months as Mortgage Rates Fall

Advertisement
billboard - default
Builders

Builder Confidence Increases for First Time in 12 Months as Mortgage Rates Fall

A slight drop in mortgage rates caused builder confidence to rise in January after 12 consecutive monthly declines


January 18, 2023
Home builder standing on ladder installing downlight in wood-framed ceiling
Image: Stock.adobe.com

After 12 straight monthly declines, builder confidence in the market for newly built single-family homes rose four points in January to 35, signaling a possible rebound for home building in 2023, the National Association of Home Builders' Eye on Housing reports. In the coming quarters, single-family starts are expected to rise from cycle lows as slower mortgage rate hikes improve housing affordability and lead to a resurgence of buyer activity.

According to the most recent NAHB/Wells Fargo Housing Market Index (HMI), measures of current sales conditions, sales expectations, and buyer traffic all increased in January, though builders are still grappling with a housing deficit of 1.5 million units.

It is possible that the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales. The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.

Read more

Related Stories

Builders

Home Builder Incentives and Price Reductions Are Finally Paying Off

Home building company KB Home reported a drop in cancellations at the start of 2023 after a major slowdown in buyer activity during the final quarter of 2022

Builders

Home Builders Remain Optimistic Despite Market Headwinds

Buyers are retreating as mortgage rates rise, but home builders are looking ahead to strong growth in the new-home market in 2023

Human Resources

It's Personal: Pilot Program Promotes Mental Health Awareness in Construction

The National Association of Home Builders partners with mental health advocate Dr. Sally Spencer-Thomas on a strategic plan to promote mental health and suicide prevention

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.