- Kevin Kelly, NAHB Chairman
U.S. home builders feel more confident, with the corresponding gauge rising in August to the highest level in seven months as a rapidly strengthening labour market helped underpin a rebound in demand for dwellings in the second half of the year. The data adds to signs that home construction and sales of newly built homes may increase after stalling during the northern summer. A monthly index from the National Association of Home Builders designed to measure confidence among single-family home builders added 2 points to 55, whereas analysts had forecasted the index to remain unchanged at its July level, following sharp declines in new home sales and housing starts from June to July. The index consists of three components: current sales conditions, which rose to 58, reaching the highest level since January, the six-month sales outlook that gained 2 points to 65, advancing to a one-year high, while the component measuring traffic of prospective buyers increased 3 points to 42. A reading above 50 is indicates a positive sentiment among homebuilders.
Historically, low mortgage rates and elevated employment make home purchases available for more Americans. Faster wage gains would help provide an additional boost for the industry, which is struggling to attract first-time buyers beset by tougher credit conditions.
© Dukascopy Bank SA