Builder Confidence Rises; Home Starts Below Expectations
Builder confidence rose four points in April to a level of 56 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Housing starts, however, were below expectations, creeping up only about 2%.
“As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
“The HMI component index measuring future sales expectations rose five points in April to its highest level of the year,” said NAHB Chief Economist David Crowe. “This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015.”
A CNBC article, though, noted that “U.S. housing starts rose far less than expected in March and permits recorded their biggest drop since last May, which could raise concerns about the economy's ability to bounce back from a soft patch hit in the first quarter.”
Read the CNBC post here. The NAHB's news release is here.
Along with the meager increase in starts, permits recorded their biggest drop since last May.
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