Low mortgage rates and a rising labor market boost US home builders’ confidence

Los Angeles /
Aug.August 16, 2016 03:30 PM

From the New York website: U.S. home builders are gaining confidence about the market for single-family homes, despite an overall slowdown in the economy.

Builders’ confidence rose two points on August’s Housing Market Index to 60 (out of a maximum 100), the second-highest level this year, according to a monthly survey by the National Association of Home Builders. Expectations for the next six months also increased by one point to 67.

“Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year,” NAHB Chief Economist Robert Dietz said in a statement, according to the Wall Street Journal.

The builder confidence index is a metric for how likely they are to begin construction on projects, which spurs job creation and stimulates the sale of a range of home products and materials.

So far this year, home builder sentiment has been up and down. Overall, the index is lower than last year’s levels, as home construction has stalled. Housing starts fell 2 percent in June compared to last June, according to data from the Commerce Department. The highest point of confidence since the recession was 65 in October. [WSJ] — E.B. Solomont


Related Articles

arrow_forward_ios
Sancerra's Marcus Cook and STG Capital Partners' Marshall Haines (iStock, USC Lusk, STG)
“Build-for-rent” community envisioned in Inland Empire
“Build-for-rent” community envisioned in Inland Empire
CenterPoint CEO Bob Chapman and an aerial of the property (Google Maps)
CenterPoint continues SoCal spree in Signal Hill
CenterPoint continues SoCal spree in Signal Hill
Digital Age dichotomy: How housing market can be unaffordable, undervalued at same time
Digital Age dichotomy: How housing market can be unaffordable, undervalued at same time
Digital Age dichotomy: How housing market can be unaffordable, undervalued at same time
Southern California median home price tacks on $85,000 in October
Southern California median home price tacks on $85,000 in October
Southern California median home price tacks on $85,000 in October
Trelora CEO Brady Miller (Trelora, iStock)
Denver discount broker starts California challenge in LA
Denver discount broker starts California challenge in LA
(iStock)
Flipside to LA’s rich zips: Top spot on “unaffordable” list
Flipside to LA’s rich zips: Top spot on “unaffordable” list
Renderings of the Downtown Los Angeles‘ Arts District project (Maxxam Enterprises)
Next on Arts District canvas: Warehouse-to-residential project
Next on Arts District canvas: Warehouse-to-residential project
California has 63 of 100 most expensive zip codes. (iStock, AboutZipCode)
California claims lion’s share of 100 priciest zips
California claims lion’s share of 100 priciest zips
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...