Cachet Real Estate Finance, LLC

  • Home
  • About Us
    • Cachet’s Mission
    • Cachet’s Network
    • Accessibility Statement
  • Custom Home Loans
    • New Construction
    • Raw-Land Aquisition
  • Resources
    • Pre-Owned Home Loans
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
  • Blog
  • Contact Us

Housing Market Index Shows Builder Confidence Remains Above 50

November 19, 2013 by Cachet Real Estate Finance Leave a Comment

Housing Market Index Shows Builder Confidence Remains Above 50The National Association of Home Builders released its Housing Market Index for November on Monday. This month’s HMI reading was 54 against expectations of a reading of 55. October’s reading was also 54 after being downwardly revised.

Readings over 50 generally indicate that a majority of builders surveyed are confident in current housing market conditions, but the current pause came after two months of decline in home builder confidence. While the short term index readings are lower than in past months, the HMI is currently 20 percent higher than last year.

David Crowe, chief economist for NAHB said that “the fact that builder confidence remains above 50 is an encouraging sign.” Mr. Crowe also cited federal debt and budget issues as factors that keep builders and consumers from building and buying homes.

Fluctuating Mortgage Rates Of Concern To Builders, Home Buyers

Home builders are also subject to the impact of volatile mortgage rates, which can create affordability issues for first time and moderate income home buyers. There is some good news concerning mortgage rates as the Federal Reserve announced its plant to keep its quantitative easing program in effect in the coming months.

QE was implemented in 2012 and consists of the Fed purchasing $85 billion per month is treasury and mortgage-backed securities with the goal of keeping long-term interest rates and mortgage rates low.

Home builder confidence readings are not in synch with construction rates, as builder confidence was rapidly driven by excessive demand for homes against minimal inventories of available homes in many areas.

Components of November’s HMI provide more precise indications of builder confidence. November’s reading for confidence in sales of single family homes within the next six months fell from 61 in October to 60 in November.

Builder sentiment for current home sales was unchanged at 58 and the November reading for builder confidence in buyer foot traffic fell by one point from 43 in October to 42.

Regional Home Builder Confidence Readings Mixed

Regional builder confidence readings for November were as follows:

Northeast: This region gained 14 points with a reading of 44 for November.

South: Builder confidence rose by one point to a reading of 55.

Midwest: November’s reading declined by eight points to 54.

West: The reading for November was one point lower at 58.

Home sales are typically slower during the holiday season and winter months.

Filed Under: Housing Analysis Tagged With: Housing Analysis,Homebuilder Confidence,Housing Market Index

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Safe & Secure Application

Any Questions?

  • This field is for validation purposes and should be left unchanged.

Connect with Us!

Our Recent Articles

  • White Lies That Could Make It Harder To Buy A Home
  • Expecting a Newborn? Baby-proof Your Home With This Quick and Easy Checklist
  • An Overview Of A Wrap-Around Mortgage: What To Know
  • What’s Ahead For Mortgage Rates This Week – March 20, 2023

Privacy & License Information

  • Privacy Policy
  • License
  • HUD Booklets
Cachet Real Estate Finance, LLC
7900 N US HWY 377
Rochelle, TX 76872
NMLS #391557 | Equal Housing Lender

Copyright © 2023 · Powered by MySMARTblog