Confidence is definitely growing.
For the housing market, that is. According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence is at its highest in a decade.
In figures recently released by the National Association of Home Builders (NAHB), the housing market index in September reached 62—the highest the index has been since October 2005.
The HMI is developed from a monthly survey conducted by the NAHB to gauge builder perceptions of sales, and future forecasts for sales of single-family homes. After adjusting for seasonal activity, the index is calculated. Any number over of 50 is regarded as “good” conditions.
“NAHB is projecting about 1.1 million total housing starts this year,” said NAHB Chief Economist David Crowe in a press release. Crowe said he expected housing to continue “moving forward at a steady, modest rate through the end of the year.”
Why is builder confidence so high?
Times are finally good. We’re in a period of economic expansion, and federal interest rates are at near zero. This means borrowing rates for mortgages are great.
We believe many people are deciding to start building their homes now while interest rates are low so that they can lock in the best possible mortgage rates before borrowing rates being to rise again.
An estimated 1.1 million people are going to start building the home of their dreams this year. Are you confident that now’s the time to begin? Start a conversation with us to find out more.