Home-builder confidence highest in almost nine years | Bedford Corners Real Estate
A gauge of confidence among home builders rose in September to the highest level in almost nine years, as builders’ views on present and coming sales rose, according to data released Wednesday.
The overall gauge of builder sentiment rose 4 points to 59 in September, according to a report from National Association of Home Builders/Wells Fargo. Readings above 50 signal that builders, generally, are optimistic about sales trends, and September marks the third consecutive month of above-50 readings.
A strengthening jobs market is perking up builders, though there are still major headwinds from strict credit standards, among other factors.
Confidence among home builders is running higher than levels historically seen at current building rates for new homes. On Thursday, the government will report on new home construction, and economists polled by MarketWatch expect that the pace slowed down in August.
Economists see faster sales and construction of new homes as the economy adds jobs at a healthy rate. Also, mortgage rates remain relatively low, making financing relatively affordable. However, not all borrowers are able to take advantage of cheap mortgages. Years after the financial meltdown lenders’ loan standards are still so high that some creditworthy borrowers haven’t been able to get a mortgage. Also, quickly rising house prices over the past year have narrowed the pool of borrowers who can afford a new home.
Data details from Wednesday’s report showed that NAHB’s gauge of builders’ views on coming sales of single-family homes rose 2 points to 67 in September, while a barometer of builders’ views on present sales rose 5 points to 63, and a gauge of prospective-buyer traffic increased 5 points to 47.
read more....
http://www.marketwatch.com/story/home-builder-confidence-highest-in-almost-nine-years-2014-09-17-101032814?link=MW_Nav_NV
The overall gauge of builder sentiment rose 4 points to 59 in September, according to a report from National Association of Home Builders/Wells Fargo. Readings above 50 signal that builders, generally, are optimistic about sales trends, and September marks the third consecutive month of above-50 readings.
A strengthening jobs market is perking up builders, though there are still major headwinds from strict credit standards, among other factors.
Confidence among home builders is running higher than levels historically seen at current building rates for new homes. On Thursday, the government will report on new home construction, and economists polled by MarketWatch expect that the pace slowed down in August.
Economists see faster sales and construction of new homes as the economy adds jobs at a healthy rate. Also, mortgage rates remain relatively low, making financing relatively affordable. However, not all borrowers are able to take advantage of cheap mortgages. Years after the financial meltdown lenders’ loan standards are still so high that some creditworthy borrowers haven’t been able to get a mortgage. Also, quickly rising house prices over the past year have narrowed the pool of borrowers who can afford a new home.
Data details from Wednesday’s report showed that NAHB’s gauge of builders’ views on coming sales of single-family homes rose 2 points to 67 in September, while a barometer of builders’ views on present sales rose 5 points to 63, and a gauge of prospective-buyer traffic increased 5 points to 47.
read more....
http://www.marketwatch.com/story/home-builder-confidence-highest-in-almost-nine-years-2014-09-17-101032814?link=MW_Nav_NV
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