HomeReal EstateU.S. Housing Market Turns Favorable for Homebuilders

U.S. Housing Market Turns Favorable for Homebuilders

The U.S. housing market appears to be becoming increasingly favorable for homebuilders, the National Association of Home Builders (NAHB)/Wells Fargo housing market index released on Monday revealed.

Rising from 50 to 55 in June, this is the first time in 11 months that the index has pushed into positive territory. It is also the sixth consecutive month that homebuilder sentiment has increased.

“Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains,” NAHB Chairman Alicia Huey observed.

Also helping to fuel builder sentiment is the gradual return of buyers to the market. Buyers largely exited the market over the past year as the Federal Reserve’s interest rate hikes pushed mortgage rates upward. Now, it appears as if buyers are adjusting to mortgage rates that have stabilized in the 6% to 7% range, Toll Brothers Chairman and CEO Douglas C. Yearley.

While the 30-year fixed mortgage was 6.69% last week, many builders do have the ability to offer a lower rate through their financing arms, thereby proving attractive to price-conscious buyers.

Tesla Delays the Launch of U.S.-Made Affordable EV

Electric vehicle maker Tesla is delaying the launch of its U.S.-made affordable car for at least several months according to a newest report by...

Netflix’s Resilience Praised by Wall Street Analysts After Strong Q1 Earnings

Streaming giant Netflix continues to be championed by Wall Street analysts, who view the company as “resilient” in a tough economic environment after strong...

Fed to “Wait for Greater Clarity” Before Making Policy Adjustment Says Chair Jerome Powell

The Federal Reserve will wait to see the impact of recent sweeping tariffs on the U.S. economy before considering making policy adjustments, according to...