The National Association of Home Builders/Wells Fargo Housing Market Index was steady at 58 in September after four months of gains as buyers reacted to rising mortgage rates, NAHB reported this week.
The index is a reflection of how confident builders are in the single-family housing market and what their expectations are for sales over the next six months. Builders are also asked about the number of prospective buyers they see, from “high to very high” to “low to very low.”
NAHB chairman Rick Judson said in a news release that builder confidence is at its highest level in eight years but that builders are seeing “some hesitancy” on the part of buyers because of rising interest rates. “Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past,” said Judson.
In September’s results, builders’ opinions on current sales conditions were unchanged, while the index component for sales expectations over the next six months dropped by three points. The number of prospective buyers that builders were seeing increased by one point to 47.
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Thank you. Thanks for this article. It is easily being noticed and conveyed the message that which you have tried to convey. Population is increasing, as well as demand of homes too, then why not builders be confident. In previous time everyone wanted their personal home nowadays everyone wants to have personal big homes. This is the undeniable fact.