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.
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