Builder confidence rises in January
A decline in mortgage rates is receiving credit for an uptick in builder confidence.
The National Association of Home Builders reported that builder confidence in the market for newly-built single-family homes rose 2 points to 58 in January on the NAHB/Wells Fargo Housing Market Index (HMI).
“The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.”
Last month, builder confidence fell 4 points to 56 with housing affordability being blamed.
“Builders need to continue to manage rising construction costs to keep home prices affordable, particularly for young buyers at the entry-level of the market,” said NAHB Chief Economist Robert Dietz. “Lower interest rates that peaked around 5% in mid-November and have since fallen to just below 4.5% will help the housing market continue to grow at a modest clip as we enter the new year.”
But it wasn’t all good news from the NAHB.
As a result of the continuing partial government shutdown no new Census figures will be released on Jan. 17 regarding housing starts and permits.
The NAHB estimates that the December Census data would show that single-family starts ended the year totaling 876,000 units, which would mark a 3% gain over the 2017 total of 848,900. The in sales during the fourth quarter of 2018 has left new home inventories elevated in some markets, however.
The latest residential home sales numbers, scheduled to be published on Dec. 27, were also withheld due to the shutdown.
All the HMI indices posted gains in January. The index measuring current sales conditions rose 2 points to 63, the component gauging expectations in the next 6 months increased 3 points to 64 and the metric charting buyer traffic edged up one point to 44.
Looking at the three-month moving averages for regional HMI scores, the Northeast dropped 5 points to 45; the Midwest and South both fell three points to 52 and 62, respectively; and the West registered a one-point drop to 67.
Last month, builder confidence fell 4 points to 56 with housing affordability being blamed.
The National Association of Home Builders reported that builder confidence in the market for newly-built single-family homes rose 2 points to 58 in January on the NAHB/Wells Fargo Housing Market Index (HMI).
“The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.”
Last month, builder confidence fell 4 points to 56 with housing affordability being blamed.
“Builders need to continue to manage rising construction costs to keep home prices affordable, particularly for young buyers at the entry-level of the market,” said NAHB Chief Economist Robert Dietz. “Lower interest rates that peaked around 5% in mid-November and have since fallen to just below 4.5% will help the housing market continue to grow at a modest clip as we enter the new year.”
But it wasn’t all good news from the NAHB.
As a result of the continuing partial government shutdown no new Census figures will be released on Jan. 17 regarding housing starts and permits.
The NAHB estimates that the December Census data would show that single-family starts ended the year totaling 876,000 units, which would mark a 3% gain over the 2017 total of 848,900. The in sales during the fourth quarter of 2018 has left new home inventories elevated in some markets, however.
The latest residential home sales numbers, scheduled to be published on Dec. 27, were also withheld due to the shutdown.
All the HMI indices posted gains in January. The index measuring current sales conditions rose 2 points to 63, the component gauging expectations in the next 6 months increased 3 points to 64 and the metric charting buyer traffic edged up one point to 44.
Looking at the three-month moving averages for regional HMI scores, the Northeast dropped 5 points to 45; the Midwest and South both fell three points to 52 and 62, respectively; and the West registered a one-point drop to 67.
Last month, builder confidence fell 4 points to 56 with housing affordability being blamed.