Lower Mortgage Rates Boost Builders’ Outlooks
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Drop in Mortgage Rates Increases Builders’ Sales Expectations
While new Census data are kept on hold by the government shut down, the state of builder confidence can deliver valuable insight into residential construction. The NAHB conducts a monthly survey of single-family builders to gauge their perceptions of current sales conditions, buyer traffic and future sales expectations, each of which are important inputs into the decision calculus for new construction. As shown below, trends in the NAHB Housing Market Index tend to closely mirror trends in single-family housing starts.