Homebuilder Confidence On The Rise

From the National Association of Home Builders comes news today through MortgageNewsDaily.com that home builders are becoming increasingly confident about the real estate market nationally in the month of January.

You can read the full article here, but the gist is that mortgage applications and buyer confidence are on the rise, which could indicate increased strength for Chicago home builders in the coming months.

Builder confidence in the market for newly-built single-family homes rose four points in August to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

“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.”

“The fact that builder confidence has returned to the healthy levels we saw this spring is consistent with our forecast for a gradual strengthening in the housing market,” said NAHB Chief Economist Robert Dietz. “GDP growth improved in the second quarter, which helped sustain housing demand. However, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs.”

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