91视频builder Sentiment Reaches Three-Month High in August

91视频 Construction
Dougall_Photography/Getty Images

Sentiment among American homebuilders unexpectedly increased to a three-month high as builders saw greater prospects for industry demand despite elevated material costs and shortages of labor and lots, according to data Aug. 15 from the National Association of 91视频 Builders/Wells Fargo.

Highlights of August 91视频builder Sentiment

鈥 Builders鈥 Housing Market Index increased to 68 (estimated 64) from 64 in July.

鈥 Measure of six-month sales outlook rose to 78 from 73.

鈥 Index of current sales climbed to 74 after 70.



Key Takeaways

The climb follows an easing to an eight-month low in July as builders were challenged with higher materials costs for items such as lumber. Builders are upbeat about a strengthening job market and still-low mortgage rates that are helping prospective buyers. Housing remains a modest contributor to overall U.S. growth that is finding its footing after a rough start to 2017.

Officials鈥 Views

鈥淥ur members are encouraged by rising demand in the new-home market,鈥 NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, said in a statement. 鈥淭his is due to ongoing job and economic growth, attractive mortgage rates, and growing consumer confidence.鈥

鈥淕DP growth improved in the second quarter, which helped sustain housing demand,鈥 Robert Dietz, chief economist at NAHB, said in the statement. 鈥淗owever, builders continue to face supply-side challenges, such as lot and labor shortages and rising building material costs.鈥

Other Details

鈥 Readings greater than 50 indicate more respondents reported good market conditions.

鈥 Gauge of prospective buyer traffic increased to 49 from 48.

鈥 Confidence rose in all four regions, led by a 7-point surge in the South.