Home Builders Liked April's Starts, Permit Data
Home builder confidence, measured by the NAHB/Wells Fargo Housing Market Index, made a five point jump in June. Now at 59, the index is tied for the highest level since last September.
The boost in confidence aligns with other recent positive housing news, reported David Crowe, Chief Economist for the National Association of Home Builders. April starts and permits, for example, were up nicely from March's depressed numbers, with single-family starts increasing 16.7%, hitting the highest monthly level since January 2008. Plus, single-family starts rose 3.7% in April, new home sales year-to-date are 23% ahead of last year, and purchase mortgage applications have been increasing. Click here for the complete article.
While the market continues to show larger gains in multi-family construction, Crowe points out that the number of household formations has been increasing. This will mean more houses are needed and could pressure rents and the need for more housing.
A couple components of the index, current sales and expected sales, also rose. Current sales increased 7 points and, not at 65, is the highest number since November 2005. Expected sales are at 69, having risen 6 points, and are the highest since October 2005.
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