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Confidence in U.S. homebuilders rises unexpectedly in October, studies show

File Photo: The newly built single-family home is for sale on July 31, 2019 in Encinitas, California, USA. REUTERS / Mike Blake

October 18, 2021

(Reuters) – Confidence in US single-family home builders rose the most in almost a year in October as customer traffic improved for the second straight month.

The National Association of Home Builders / Wells Fargo Housing Market Index rose 4 points, the highest since November 2020, to 80 this month. In Reuters poll 76, this measurement exceeded the economist’s estimated median, and the increase pushed the index to its highest level in three months.

Reads above 50 indicate that more builders consider the condition better than bad.

Robert Dietz, Chief Economist at NAHB, said:

Nonetheless, all three sub-indexes improved, and the situation appeared to improve in all four regions tracked in the monthly survey.

The current index rose 5 points to 87, the highest since June. The index, which measures sales forecasts for the next six months, rose 3 points to 84, the highest since December last year. The customer traffic index improved by 4 points to 65, the highest since February.

Affordable prices could also be tested as interest rates are expected to rise in the coming months as the Federal Reserve Board of Governors begins to abolish economic support during the pandemic era, Dietz said. The Federal Reserve plans to begin cutting $ 120 billion in monthly Treasuries and mortgage-backed securities purchases at the next meeting in just over two weeks, although central bank rate hikes are seen farther away. It is widely expected to be announced. ..

Still, mortgage rates have already begun to rise, with average 30-year mortgage rates rising to 3.18% in early October, the highest since June, according to the Association of Mortgage Banks.

(Report by Dan Burns, edited by Chizu Nomiyama)



Confidence in U.S. homebuilders rises unexpectedly in October, studies show

Source link Confidence in U.S. homebuilders rises unexpectedly in October, studies show

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