Home builder confidence in the market for newly built single-family homes rose 7 points in February to 42, the highest reading since September and the largest monthly gain since June 2013, according to CNBC. While a reading of 42 is still well below the 81 points recorded in February of last year, it’s up from 31 in December.
As mortgage rates begin to fall from highs reached during fall 2022, housing affordability is gradually improving, and as a result, builders are optimistic that buyers will soon make a return to the for-sale market.
“With the largest monthly increase for builder sentiment since June 2013, the HMI indicates that incremental gains for housing affordability have the ability to price-in buyers to the market,” said NAHB Chairman Alicia Huey, a homebuilder and developer from Birmingham, Alabama. “The nation continues to face a sizeable housing shortage that can only be closed by building more affordable, attainable housing.”
Advertisement
Related Stories
Forty Under 40
2024 Forty Under 40 Nomination Form
Help us recognize the rising stars, innovators, and game-changers in the housing industry!
Market Data + Trends
Housing Market Index Shows Builder Sentiment Continues to Rise
In March, builder confidence in the market for newly built single-family homes hit its highest level since July 2023
NAHB
Overcoming Challenges, Celebrating Victories
NAHB Chairman's Message: 2023 was a challenging year for home building, but among the challenges, there were many victories as well
