The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) increased 2 points to 43 in October, up from 41 in September.
“While housing affordability remains low, builders are feeling more optimistic about 2025 market conditions,” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan. “The wild card for the outlook remains the election, and with housing policy a top tier issue for candidates, policymakers should be focused on supply-side solutions to the housing crisis.”
“Despite the beginning of the Fed’s easing cycle, many prospective home buyers remain on the sideline waiting for lower interest rates,” said NAHB Chief Economist Robert Dietz. “We are forecasting uneven declines for mortgage interest rates in the coming quarters, which will improve housing demand but place stress on building lot supplies due to tight lending conditions for development and construction loans.”
The HMI Index charting current sales conditions in October rose two points to 47, the component measuring sales expectations in the next six months increased four points to 57 and the gauge charting traffic of prospective buyers posted a two-point gain to 29.
Looking at the three-month moving average for regional HMI scores, the West increased 3 points to 42, the Northeast and Midwest increased 2 points to 51 and 41 respectfully, and the South held steady at 41.
Read the NAHB release.
