As inflation continues to decrease and homebuilders expect mortgage rates to stabilize in the coming months, the National Association of Home Builders published a report on Thursday indicating that homebuilder confidence in the U.S. saw a better-than-anticipated improvement in October.
The report revealed that the NAHB/Wells Fargo Housing Market Index increased to 43 in October, up from 41 in September. Economists had predicted the index would slightly rise to 42.
“Although housing affordability is still a concern, builders are becoming more optimistic about market conditions in 2025,” stated NAHB Chairman Carl Harris.
He continued, “The unpredictable factor for the outlook is the upcoming election, and given that housing policy is a significant issue for candidates, policymakers should focus on supply-side solutions to address the housing crisis.”
The housing market index experienced growth for the second month in a row, with all three component indices showing increases.
The component that assesses sales expectations for the next six months demonstrated a significant improvement, leaping to 57 in October from 53 in September.
The index evaluating current sales conditions also rose to 47 in October, up from 45 in September, while the metric tracking the number of prospective buyers increased to 29 in October from 27 in September.
The NAHB also noted that the most recent HMI survey indicated that the proportion of builders reducing prices remained steady at 32 percent in October, consistent with last month’s figures.
Additionally, the average price reduction reverted to the long-term trend of 6 percent after dipping to 5 percent in September, according to the NAHB.
The Commerce Department is set to release a separate report on new residential construction for the month of September on Friday.
For comments and feedback contact: editorial@rttnews.com
Business News
