Falling mortgage rates pushed home builder sentiment up one point in August, but they haven’t spurred new construction, CNBC reports.
Builder confidence for single-family homes hit 66 in August, 1 point higher than it was in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). That is down from 67 in August 2018, however. Sentiment has swayed between 64 and 66 for the past four months. Anything above 50 is considered positive.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” said NAHB Chairman Greg Ugalde, a homebuilder from Torrington, Connecticut.
Over the first six months of this year, 417,453 single-family home construction permits were issued, down 6.1% from June 2018′s level of 444,600, according to the U.S. Census.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable