The National Association of Home Builders/Wells Fargo Housing Market Index rose four points to 62 in February. For the second consecutive month, home builders cited declining mortgage rates among the chief reasons for the increase.
“Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment,” said NAHB Chairman Randy Noel. “In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season.”
All three HMI components posted gains again in February. The component measuring current sales conditions rose three points to 67; the component measuring sales expectations in the next six months increased five points to 68, and the component measuring buyer traffic moved up four point to 48.
The regional three-month moving averages for regional HMI scores showed mixed results. The Northeast fell two points to 43, the Midwest and West remained unchanged at 52 and 67 respectively while the South posted a one point gain to 63.
Read the NAHB release.