US homebuilder sentiment unexpectedly rises to highest level since July
Payne Capital Management President Ryan Payne weighs in on the U.S. economy, arguing that purchasing power will continue to ‘strengthen’ for the American people.
Builders' confidence in the U.S. housing market made a surprise leap into positive territory this month, jumping to the highest level since July as more home buyers gravitate toward new construction amid the ongoing shortage of existing homes.
The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, rose three points to 51 in March, marking its fourth consecutive monthly rise.
Homes under construction at the Cold Spring Barbera Homes subdivision in Loudonville, New York, on Nov. 8, 2023. ( Angus Mordant/Bloomberg via Getty Images / Getty Images)
Any reading below 50 is considered negative. This is the first time the index has climbed above the break-even point since July. Economists expected this month's reading to remain flat at 48.
«Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year,» said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kansas.
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«But even though there is strong pent-up demand, builders continue to face several supply-side challenges, including a scarcity of buildable lots and skilled labor, and new restrictive codes that continue to increase the cost of building homes,» Harris added.
A persistent shortage of existing homes on the market is driving more buyers toward new construction. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
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