Sales of newly built homes are on the rise, giving homebuilders a boost in confidence as the rest of the housing market seems to be in a slump. Builder confidence in newly built, single-family homes rose three points in May to a reading of 66. Anything above 50 is generally considered positive however this is lower than the reading of 70 in May 2018. This latest information comes from the National Association of Home Builders/Wells Fargo Housing Market Index.
Demand for new homes continues to remain high. The index’s component measuring sales expectations for the next six months rose to a reading of 72 last month.
“This lower-interest rate environment, along with ongoing job growth and rising wages, is contributing to a gradual improvement in the marketplace,” said NAHB Chief Economist Robert Dietz.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.
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