Confidence in the future of the housing market from the perspective of home builders took a dive in March, according to a new survey. The National Association of Home Builders’ confidence index for March shows a drop of two points to a reading of 82. This is the lowest reading since August 2020.
Demand for new homes remains high however concerns about affordability are making home builders apprehensive. The cost to build new homes is continuing to rise as lumber prices increase. The price of wood used to construct homes has more than doubled over the past year.
Builders are also concerned about the possibility of increases in mortgage rates over the next several months. Meanwhile, rates remain near historic lows with conforming no-point 30-year fixed mortgage rates averaging 3.0 percent and 15-year rates near 2.375 percent.
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