Builder confidence near record high

Builder confidence near record high

Builder confidence near record high
Only once before has an index measuring home builder confidence in the future of the housing market topped a reading of 80 – that was September’s reading of 83. October seems to have raised the bar once again with a reading of 85. This is according to the National Association of Home Builders/Wells Fargo Housing Market Index. The index is used to gauge builder confidence in the market for newly built single-family homes.

High demand from buyers for new homes coupled with record-low mortgage rates is pointing to a promising future for home builders.

The only set backs come from the challenge in constructing new homes in the midst of a global pandemic. Shortages of labor, land and lumber are lengthening construction times and cutting in to profits.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.