Economic Snapshot: Builder confidence rises two points in August

Builders expect the housing market to continue on an upward trajectory for the remainder of the year.

Housing Market Index

Builder confidence rose two points to 60 in August, up from a downwardly revised reading of 58 in July.

“Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July,” said NAHB Chief Economist Robert Dietz. “Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year.”

Two of the three Housing Market Index components posted gains in August, The component gauging current sales conditions rose two points to 65 and he index charting sales expectations increased one point to 67. The component measuring buyer traffic dropped one point to 44.

Looking at three-month moving averages for regional HMI scores, the South and the Northeast both rose two points to 63 and 41, respectively, while the West was unchanged at 69. The Midwest fell two points to 55.

Advertisement

“New construction and new home sales are on the rise in most areas of the country, and this is helping to boost builder sentiment,” said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ill.

Housing starts

Privately owned housing starts were at a seasonally adjusted annual rate of 1,211,000 in July. This is 2.1 percent above the revised June estimate of 1,186,000 and 5.6 percent above the July 2015 rate of 1,147,000.

Single-family housing starts were at a rate of 770,000 in July. This is 0.5 percent above the revised June figure of 766,000.

Privately owned housing completions were at a seasonally adjusted annual rate of 1,026,000 in July. This is 8.3 percent below the revised June estimate of 1,119,000 but 3.2 percent above the July 2015 rate of 994,000.

Single-family housing completions were at a rate of 743,000 in July. This is 0.4 percent below the revised June rate of 746,000.

Leave a Reply

Your email address will not be published. Required fields are marked *

*