NAHB Notes Rise in Builder Confidence

With more affordable pricing and low mortgage interest rates, homebuilders showed more confidence in June according to the National Association of Home Builders on June 18, 2012.

Reaching it’s highest level since April of 2007, the index component that measures current sales conditions reached a score of 32, growing 2 points since May. At the same time, the NAHB/Wells Fargo Housing Market Index which is the index measuring building confidence came up 1 point to achieve and index score of 29.

According to a statement by the National Association of Home Builders Chairman, Barry Rutenberg, the slight rise in building confidence is due to the continued improvement in several individual housing markets where people are taking advantage of the affordable pricing and low mortgage interest rates.  David Crowe, chief economist of the NAHB, did not have a fully positive comment, making statement about “recent economic reports showing a weakening in the page of recovery.”

Econoday analysts commented on the report, stating that the sales of new homes are at their highest level of recovery according to the June report.

Gretchen Wegrich

Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.