Home Builder Confidence Posts Biggest Monthly Gain in a Decade
Home builder confidence in the market for newly built single-family homes rose 7 points in February to 42, the highest reading since September and the largest monthly gain since June 2013, according to CNBC. While a reading of 42 is still well below the 81 points recorded in February of last year, it’s up from 31 in December.
As mortgage rates begin to fall from highs reached during fall 2022, housing affordability is gradually improving, and as a result, builders are optimistic that buyers will soon make a return to the for-sale market.
“With the largest monthly increase for builder sentiment since June 2013, the HMI indicates that incremental gains for housing affordability have the ability to price-in buyers to the market,” said NAHB Chairman Alicia Huey, a homebuilder and developer from Birmingham, Alabama. “The nation continues to face a sizeable housing shortage that can only be closed by building more affordable, attainable housing.”