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- U.S. builder confidence improves more than forecast in October
U.S. builder confidence improves more than forecast in October
The National
Association of Homebuilders (NAHB) announced on Wednesday its housing market
index (HMI) rose three points to 71 in October from an unrevised September
reading of 6. That was the highest level since February 2018.
Economists had
forecast the HMI to stay at 68.
A reading over
50 indicates more builders view conditions as good than poor.
All the HMI
indices were higher this month. The indicator gauging current sales conditions
increased three points to 78, while the component measuring traffic of
prospective buyers surge four points to 54 and the measure charting sales
expectations in the next six months climbed six points to 76.
NAHB Chairman
Greg Ugalde said: “The housing rebound that began in the spring continues,
supported by low mortgage rates, solid job growth and a reduction in new home inventory.”
Meanwhile, NAHB
Chief Economist Robert Dietz noted: “The second half of 2019 has seen steady
gains in single-family construction, and this is mirrored by the gradual uptick
in builder sentiment over the past few months. However, builders continue to
remain cautious due to ongoing supply side constraints and concerns about a
slowing economy.”
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