Home Builder Confidence Remains High
Home builder sentiment remains positive in February in the wake of the new tax law, and despite rising mortgage rates. The latest National Association of Home Builders/Wells Fargo Housing Market Index was at 72 points.
At the core of builder confidence are future sales expectations. This index rose to a peak level of 80 points, while the index measuring buyer traffic plateaued at 54, per CNBC. "With ongoing job creation, increasing owner-occupied household formation, and a tight supply of existing home inventory, the single-family housing sector should continue to strengthen at a gradual but consistent pace," said NAHB chief cconomist Robert Dietz.
"Builders are excited about the pro-business political climate that will strengthen the housing market and support overall economic growth," said NAHB chairman Randy Noel, a custom home builder from LaPlace, LA. "However, they need to manage supply-side construction hurdles, such as shortages of labor and lots and building material price increases," he added.