The nation’s homebuilders are feeling better about their business, as falling mortgage rates help more buyers afford homes.
They are still not, however, building enough homes to meet demand. That has less to do with buyer demand and more to do with concerns about the larger economy and trade.
Builder confidence for single-family homes hit 66 in August, 1 point higher than it was in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). That is down from 67 in August 2018, however. Sentiment has swayed between 64 and 66 for the past four months. Anything above 50 is considered positive.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” said NAHB Chairman Greg Ugalde, a homebuilder from Torrington, Connecticut.
Of the index’s three components, current sales conditions…