Home Buyers Act On Seasonally Low Mortgage Rates, Homebuilder Confidence Rises In March
Dan Green | The Mortgage Report | Mrch 18, 2014 | link
Cold weather continues to affect U.S. homebuilder confidence.
One month after falling 10 points to reach its lowest point in nine months, the National Association of Homebuilder’s Housing Market Index has stopped its slide and improved by one point.
For buyers of new homes nationwide, home prices are expected to rise through the rest of 2014.
Builder Confidence Points To “Poor” Conditions
Each month, the National Association of Home Builders (NAHB) polls its members on current market conditions as the members see it, asking three specific questions regarding the health of single-family, new construction housing.
The association then collates member responses and presents them as the Housing Market Index (HMI).
The Housing Market Index is scored on a scale of 1-100, with readings below 50 suggesting “poor” market conditions and readings about 50 suggesting “good” market conditions.
In March, homebuilder confidence climbed one point from the month prior to reach 47. The reading follows last month’s 10-point drop which was the largest one-month drop in the history of the HMI.