Builder confidence in the market for newly-built single-family homes jumped six points to 71 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.
“Builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting,” said Granger MacDonald, NAHB chairman.
“While builders are clearly confident, we expect some moderation in the index moving forward,” said Robert Dietz, NAHB chief economist. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”
All three HMI components posted robust gains in March. The component gauging current sales conditions increased seven points to 78 while the index charting sales expectations in the next six months rose five points to 78. Meanwhile, the component measuring buyer traffic jumped eight points to 54.
The three-month moving averages for regional HMI scores rose in the Midwest and the South three points to 68 and one point to 68 respectively. The West dipped three points to 76 and the Northeast dropped one point lower to 48.
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