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- U.S. builder confidence improves slightly in August
U.S. builder confidence improves slightly in August
The National
Association of Homebuilders (NAHB) announced on Thursday its housing market
index (HMI) rose one point to 66 in August.
Economists had
forecast the HMI to stay at 65.
A reading over
50 indicates more builders view conditions as good than poor.
Two out of the
three HMI components were higher this month. The indicator gauging current
sales conditions increased two points to 72 and the component measuring traffic
of prospective buyers moved up two points to 50. Meanwhile, the measure
charting sales expectations in the next six months dropped one point to 70.
NAHB Chairman
Greg Ugalde said: “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.”
Meanwhile, NAHB
Chief Economist Robert Dietz noted: “While 30-year mortgage rates have dropped
from 4.1% down to 3.6% during the past four months, we have not seen an
equivalent higher pace of building activity because the rate declines occurred
due to economic uncertainty stemming largely from growing trade concerns. Although
affordability headwinds remain a challenge, demand is good and growing at lower
price points and for smaller homes.”
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