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Home builder confidence still solid despite drop

Posted by The Aramco Group on Sun, Jun 18, 2017 @ 14:06 PM

Builder confidence in the market for newly-built homes decreased in June, down two points according to the National Association of Home Builders. The market index fell to a reading of 67 this month from 69 in May. Readings above 50 indicate that more builders view sales conditions as good rather than poor.

While the two point drop is a reflection of a slightly weaker builder sentiment at the start of the summer, the reading remains historically high.

"As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots," said NAHB chief economist. "That is impeding stronger growth in the single-family sector."

The index reached a 11-year high in March with a reading of 71. Single-family housing starts have more than doubled from the lows seen in 2009 but are still well below levels needed to meet demand.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.125 percent.

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