Builder Optimism Grows In November

The National Association of Home Builders Housing Market Index gauges builder confidence in the market for newly built single-family homes on a scale where any number above 50 indicates more builders view conditions as good than poor. In November, the index gained four points, reaching a level of 58. David Crowe, NAHB’s chief economist, said low mortgage rates, affordable home prices, and solid job creation are contributing to a steady housing recovery. According to Crowe, the year started slow but the index has been above 50 for five consecutive months and he expects that momentum to carry over into 2015. Also, all three components of the index – including current sales conditions, current buyer traffic, and future sales – registered improvement from the month before, with current sales conditions up 5 points from October. Regionally, the South, West, and Northeast all saw gains, while the Midwest slipped 2 points. More here.

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