Home Builder Confidence Jumps to 10-Year High

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

The current sales conditions sub-index added three points in October to reach 70, and the sub-index that estimates prospective buyer traffic remained unchanged at 47. The sales expectations sub-index rose seven points from 68 to 75.

NAHB’s chief economist said:

With October’s three-point uptick, builder confidence has been holding steady or increasing for five straight months. This upward momentum shows that our industry is strengthening at a gradual but consistent pace. 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.

In the NAHB’s regions, the three-month moving average index rose in all four. In the South the index rose from 64 to 65 in October, and by a like amount to 60 in the Midwest and to 47 in the Northeast. The moving averaged jumped five points in the West to 69.

The current average interest rate for a conventional 30-year fixed mortgage loan is 3.83%, 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 in the 60-point range since June. Prior to mid-2013, the index had not risen to 50 since mid-2006.