Currently Reading

Home Builder Sentiment Soars in Record Monthly Surge, Signaling an Industry Rebound

Advertisement

Home Builder Sentiment Soars in Record Monthly Surge, Signaling an Industry Rebound


June 17, 2020
Happy home builder on phone
By Daisy Daisy

As the summer homebuying season heats up, home builders are relieved to see buyers returning to the market. In the largest monthly increase ever in NAHB/Wells Fargo Housing Market Index, builder sentiment jumped a whopping 21 points in June to 58, according to CNBC. The index for homebuying traffic also jumped substantially, more than doubling to 43. Pent-up demand, low interest rates, and stable housing prices are a perfect storm for a successful summer season as long as the pandemic is kept at bay. Though it will still take time to make up for lost closings, this stronger than expected rebound is soothing builders’ nerves for the future. 

Builder sentiment jumped a striking 21 points in June to 58, the largest monthly increase ever in the National Association of Home Builders/Wells Fargo Housing Market Index. Any reading above 50 indicates a positive market. In April, it plunged a record 42 points to 30.

“As the nation reopens, housing is well-positioned to lead the economy forward,” said NAHB Chairman Dean Mon, a homebuilder and developer from Shrewsbury, New Jersey. “Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising.”

Meanwhile, mortgage applications to purchase a newly built home jumped 10.9% annually in May, according to the Mortgage Bankers Association.

Read More

Related Stories

Forty Under 40

Pro Builder 2022 Forty Under 40 Nomination Form

Each year Pro Builder honors 40 rising stars of the home building industry with its Forty Under 40 Awards

Forty Under 40

Pro Builder 2022 Forty Under 40 Nomination Form

Each year Pro Builder honors 40 rising stars of the home building industry with its Forty Under 40 Awards

Forty Under 40

Pro Builder's Forty Under 40 Frequently Asked Questions

Answers to your Forty Under 40 questions and a link to the 2022 nomination form

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

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.