Home builder confidence rose another three points this month to 64 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), the highest it’s been since the housing boom of 2005.
According to NAHB Chief Economist David Crowe, October’s three-point increase indicates that builder confidence has been holding steady or increasing for five consecutive months. “With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015,” said Crowe.
The Housing Market Index measures three components: Sales expectations, which increased seven points to 75; current sales conditions, which rose three points to 70; and buyer traffic, which held steady in October at 47.
NAHB Chairman Tom Woods says lasting gains in the single-family housing market shows that more serious buyers are coming forward. But he says home builders remain challenged when it comes to the availability of lots and labor.
All four regions of the country saw increases in the three-month moving averages for regional HMI scores. The Northeast rose one point to 47, the Midwest increased to 60 and the South rose a point to 65. Again this month, the West saw the biggest gains, with a five point increase to 69.
This Week’s Mortgage Rate Summary:
Rates Currently Trending: NEUTRAL
Weekly Rate Forecast: NEUTRAL
This Week’s Potential Volatility: AVERAGE
Prospective buyers who’ve been playing the waiting game are urged to talk with their mortgage professional to learn more about the risks and rewards of locking a rate or floating down a current one in this increasingly active market.