WASHINGTON (dpa-AFX) - With inflation gradually easing and homebuilders anticipating mortgage rates will moderate in coming months, the National Association of Home Builders released a report on Thursday showing homebuilder confidence in the U.S. improved by slightly more than expected in the month of October.
The report said the NAHB/Wells Fargo Housing Market Index climbed to 43 in October after rising to 41 in September. Economists had expected the index to inch up to 42.
'While housing affordability remains low, builders are feeling more optimistic about 2025 market conditions,' said NAHB Chairman Carl Harris.
He added, '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.'
The housing market index rose for the second consecutive month amid increases by all three of the component indices.
The component measuring sales expectations in the next six months showed a notable advance, jumping to 57 in October from 53 in September.
The index charting current sales conditions also rose to 47 in October from 45 in September, while the gauge charting traffic of prospective buyers increased to 29 in October from 27 in September.
The NAHB also said the latest HMI survey revealed that the share of builders cutting prices held steady at 32 percent in October, the same rate as last month.
Meanwhile, the average price reduction returned to the long-term trend of 6 percent after dropping to 5 percent in September, the NAHB said.
The Commerce Department is scheduled to release a separate repot on new residential construction in the month of September on Friday.
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