For the third consecutive month, builder confidence in the housing market has increased in November. The National Association of Home Builders reported that its latest iteration of the NAHB/Wells Fargo Housing Market Index climbed three points from October to a reading of 83. This latest increase comes as home builders continue to face a variety of challenges in their industry but comforted by the fact that demand for new housing remains near all-time highs.
“In addition to well publicized concerns over building materials and the national supply chain, labor and building lot access are key constrains for housing supply,” said Robert Dietz, NAHB’s chief economist. “Policymakers need to focus on resolving these issues to help builders produce more housing to meet strong market demand.”
Meanwhile, construction of new homes dipped in October with housing starts declining month-over-month by 0.7 percent. This is far below estimates from industry experts, illustrating the struggle builders are facing.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.
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