Homebuilder Confidence Soared in August

The National Association of Home Builders/Wells Fargo Housing Market Index rose to 68 in August, a four point increase from June’s reading.

“Our members are encouraged by rising demand in the new-home market,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “This is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.”

All three HMI components posted gains in August. The component measuring current sales conditions rose four points to 74; the component measuring sales expectations in the next six months grew five points to 78, and the component measuring buyer traffic moved up one point to 49.

The regional three-month moving averages for HMI scores showed gains in one of the four regions. The Northeast edged one point up to 48. The West, South and Midwest all remained unchanged at 75, 67 and 66, respectively.

Read the NAHB release.

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About Stephen Newton

Stephen Newton is an economic research associate at ABA.