°®¶¹´«Ã½builder Sentiment Reaches Three-Month High in August
Sentiment among American homebuilders unexpectedly increased to a three-month high as builders saw greater prospects for industry demand despite elevated material costs and shortages of labor and lots, according to data Aug. 15 from the National Association of °®¶¹´«Ã½ Builders/Wells Fargo.
Highlights of August °®¶¹´«Ã½builder Sentiment
• Builders’ Housing Market Index increased to 68 (estimated 64) from 64 in July.
• Measure of six-month sales outlook rose to 78 from 73.
• Index of current sales climbed to 74 after 70.
Key Takeaways
The climb follows an easing to an eight-month low in July as builders were challenged with higher materials costs for items such as lumber. Builders are upbeat about a strengthening job market and still-low mortgage rates that are helping prospective buyers. Housing remains a modest contributor to overall U.S. growth that is finding its footing after a rough start to 2017.
Officials’ Views
“Our members are encouraged by rising demand in the new-home market,†NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, said in a statement. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.â€
“GDP growth improved in the second quarter, which helped sustain housing demand,†Robert Dietz, chief economist at NAHB, said in the statement. “However, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs.â€
Other Details
• Readings greater than 50 indicate more respondents reported good market conditions.
• Gauge of prospective buyer traffic increased to 49 from 48.
• Confidence rose in all four regions, led by a 7-point surge in the South.
