Builder Confidence Rises in January

Window & Door
January 22, 2019
Markets

Builder confidence for newly built single-family homes rose two points to 58 this month in the NAHB/Wells Fargo Housing Market Index, buoyed in part by interest rates sitting just below 4.5 percent, according to the National Association of Home Builders. “The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” says NAHB Chairman Randy Noel, adding that low unemployment, solid job growth and favorable demographics will continue to support housing demand in the near future. NAHB chief economist Robert Dietz says that builders must manage rising construction costs, especially for entry-level buyers.

Although no new Census figures were released because of the government shutdown, NAHB estimated that the December Census would have showed single-family starts ending the year at 876,000 units– a 3 percent increase from 2017. Some markets have an elevated new home inventory, however, because of a sales slowdown in last year’s fourth quarter.