Despite a turbulent year with supply and demand imbalances, rising prices and construction challenges, the confidence levels of America’s home builders remains high. According to the National Association of Home Builders/Wells Fargo Housing Market Index for December, confidence levels in the future of the housing market increased for the fourth consecutive month. The index reading of 84 for the month of December ties with the February level as the highest point of 2021.
The biggest challenges cited by home builders in the coming months remain a shortage of construction materials, labor and land to develop on. Even in the face of these challenges, builders remain optimistic that demand for new homes will continue in the coming year, driving their business and keeping traffic to view new homes high.
The NAHB survey is conducted monthly by asking new home builder members for their viewpoints on the future of the housing market, buyer perspectives and challenges. Any reading above 50 is considered to mean that more builders view conditions as good rather than poor.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
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