Homebuilder Confidence at 9-Year High in August

An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.

The current sales conditions subindex added a point in August to reach 66, and the sales expectations subindex remained unchanged at 70. The subindex that estimates prospective buyer traffic increased by two points to 45.

NAHB’s chief economist said:

Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015. Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year.

In the NAHB’s four regions, the three-month moving average index in the South rose from 61 to 63 in August, and by a like amount to 44 in the Northeast. In the West the index rose by three points to 63 and by the same amount in the Midwest to 58.

The average interest rate for a conventional 30-year fixed mortgage loan for the year to date is 4%, according to Mortgage News Daily. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.26%.

The NAHB/Wells Fargo housing market index has remained above 50 since July 2014, following a sharp drop in the first half of that year. Prior to mid-2013, the index had not risen to 50 since mid-2006.

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