Kristin Johnson

  • About Me
  • Meet Our Team
  • Blog
  • Mortgage Info
    • Buying or Selling a Manufactured Home
    • Docs Required for Prequalification
    • Your Home Loan Process
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage Glossary
    • Mortgage FAQ
  • Apply Now
  • Contact

NAHB: Home Builder Confidence Highest in 12 Years

March 16, 2017 by Kristin Johnson

According to the National Association of Home Builders Housing Market Index for March, builder confidence in market conditions reached its highest level in 12 years and was six points higher than February’s index reading of 65.

Housing market index readings are based on three components. Builder confidence in current market conditions for new single family homes rose seven points to 78; builder confidence in market conditions for the next six months increased five points to an index reading of 78. Most surprising was the reading for buyer traffic in new housing developments, which eight points to 54 in March. Buyer traffic readings typically don’t exceed the benchmark reading of 50, which indicates neutral builder sentiment. Builder confidence in buyer traffic for March surpassed 50 only twice since the housing bubble era.

Housing Market Index Readings Expected to Moderate in Coming Months

Robert Dietz, Chief Economist for NAHB, said that Housing Market Index readings will probably be more moderate in coming months as builders continue to face obstacles. Builders cited rising costs for materials and ongoing shortages of labor and lots. On the upside, builders surveyed said that a less regulatory environment contributed to higher confidence readings.

While home builder confidence is higher, the connection between confidence and building more homes isn’t matched by housing starts. Builders also said that rising mortgage rates are a barrier to buying new homes. The Federal Reserve’s Federal Open Market Committee raised the target federal funds rate to 0.75 to 1.00 percent on Wednesday; federal rate hikes typically influence private lenders to raise consumer rates including mortgage rates.

In a post-meeting statement, Fed officials said that the federal funds rate remains accommodative and will continue to sustain economic growth and the Fed’s goal for a long-run inflation rate of 2.00 percent. The Fed cited its dual mandate of achieving maximum employment and price stabilization as supporting its decision to raise rates, but stated that actual decisions to raise the federal funds rate are based on close readings and information about global and domestic economic developments; future decisions could be impacted by emerging economic factors.

Home Building Tips Tagged: NAHB

Kristin Johnson

Contact Kristin


OFFICE 970.460.9607
CELL 303.875.5686
FAX 303.864.7555
kristin.johnson@csbt.com
NMLS #501966

APPLY NOW  
GET A RATE QUOTE

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.
March 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Feb    

Categories

Previous Posts

Looking For Something?

Equal Housing Lender
NMLS Consumer Access

Where We're Located

map to office
Directions from I-25
• Take Exit 392 for Windsor and head East.
• Go 3.5 miles and take a left onto 12th Street.
• Take first right at West Ash Street.
• Turn right into the first parking lot/office building complex. The building has green awnings.
Please call if you need assistance.

Copyright © 2021 Kristin Johnson  ·  All rights reserved   ·   Log In