The National Association of Home Builders/Wells Fargo Housing Market Index rose to 58 in January, up two points from December and rebounding from the lowest reading in three years. Home builders cited declining mortgage rates among the chief reasons for the increase.
“The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.”
All three HMI components posted gains in January. The component measuring current sales conditions rose two points to 63; the component measuring sales expectations in the next six months increased three points to 64, and the component measuring buyer traffic moved up one point to 44.
The regional three-month moving averages for HMI scores showed declines in all four regions. The Northeast fell five points to 45, the Midwest declined three points to 52, the South declined three points to 62, and the West fell one point to 67.
Read the NAHB release.