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Increased home-builder confidence

Home-builder confidence hit the highest level in July for the first time in over 7 years! The data, released by National Association of Home Builders/Wells Fargo, reflects a 63 percent increase from a year ago. Readings above a 50 on the index used to determine this confidence indicate that builders are optimistic about future sales trends. The index reached a reading of 57 for July, which is the highest point since January 2006. This increase could be due in part to the limited number of existing houses on the market, which is causing the need for additional housing to be constructed. While there is a higher level of confidence with builders, there is still concern that rising mortgage rates could potentially curb the housing market’s rebound. Right now other factors seem to be offsetting the rising interest rates, so for the time being this increase in confidence seems as though it will be around for now.

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