Builder Confidence Rises in August
Builder Confidence Rises in August

Builder confidence in the market for newly built, single family homes rose two points — to 55 — on the National Association of Home Builders/Wells Fargo Housing Market Index for August. This is the third consecutive monthly gain, and the highest level the for the index since January. The West registered a four-point gain, to 56.

While homebuyers continue to face tight credit conditions and homebuilders face a shortage of finished lots and labor, NAHB Chair  Kevin Kelly, observed that as the employment picture brightens, homebuilders "are seing a noticeable increase in the number of serious buyers entering the market."

The HMI index gauges builder perceptions of current single family home sales and expectations for the next six months as good, fair or poor. And the survey asks builders to rate traffic as high, average or low. The indices that gauge current sales conditions and expectations for future sales rose two points, to 58 and 65, respectively. The index that guages traffic of prospective homebuyers increased three points, to 42.

"Builder confidence appears to be firming, following an uneven spring," said David Crowe, NAHB's chief economist.  "Factors contributing to this rise include sustained job growth, historically low mortgage rates and affordable home prices, which are helping to unleash pent-up demand."

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