Home builders in the U.S. felt a little more optimistic about the future of the housing market – more so than they have since the beginning of 2016. According to the National Association of Home Builders, builder sentiment rose to 60 in June, up from 58 in May. This is the highest reading since January. The home builders index is a measurement based on a survey of 233 respondents.
Readings about 50 typically indicate that more builders view positive conditions surrounding future home sales. The readings have remained 'positive' for the last two years and reach it's highest levels since the recession back in October.
Sales of new homes climbed nearly 17 percent in April, the most in over eight years. A strong jobs market and low interest rates have helped home sales surge, causing pressure on home builders to keep up with demand.
Meanwhile, conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 2.875 percent.
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