The National Association of Home Builders/Wells Fargo Housing Market Index rose to 71 in October, three points above September’s reading. This is the highest reading since February 2018.
“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Connecticut.
“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.”
All three HMI components increased in October. The component measuring current sales conditions rose three points to 78; the component measuring sales expectations in the next six months increased six points to 76, and the component measuring buyer traffic rose four points to 54.
The regional three-month moving averages for HMI scores showed increases in all four regions. The Northeast rose one point to 60, the Midwest increases one point to 58, the South jumped three points to 73, and the West rose three points to 78.
Read the NAHB release.