Builder’s Get Confident, But Why?
The beleaguered housing sector (NYSE:IYR) saw some good news with the release of the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which indicated that builder confidence (NYSE:XHB) for new, single-family homes saw a gain of four points to 18.
“Builder confidence regained some ground in October due to modest improvements in buyer interest in select markets where economic recovery is starting to take hold and where foreclosure activity has remained comparatively subdued,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev.
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Incidentally, this was the largest one-month gain on the HMI index since April 2010, when tax credits gave a boost to the industry.
“This latest boost in builder confidence is a good sign that some pockets of recovery are starting to emerge across the country as extremely favorable interest rates and prices catch consumers’ attention,” said NAHB Chief Economist David Crowe.
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