Housing

Homebuilder Confidence Remains Solid in January

Paul Ausick

Published: January 19, 2016 12:15 pm

Last Updated: January 13, 2020 2:52 pm

The National Association of Home Builders (NAHB)/Wells Fargo housing market index for January remained unchanged from December’s revised reading of 60. The reading was lower than the consensus forecast of 62 from a Bloomberg survey of economists. In October, the NAHB index reached 64, its highest level since the end of the housing boom in late 2005.

An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.

The current sales conditions sub-index rose two points in January to settle at 67, and the sub-index that estimates prospective buyer traffic dropped from 46 to 44. The sub-index measuring sales expectations for the next six months fell three points from 66 to 63.

In the NAHB’s regions, the three-month moving average index slipped in all four. In the West, Midwest and Northeast, each posted a one-point decline to 75, 57 and 49, respectively. The index fell by two points to 61 in the South

The current average interest rate for a conventional 30-year fixed mortgage loan is 3.84%, according to Mortgage News Daily. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.20%.

The NAHB/Wells Fargo housing market index has remained in the 60-point range since June. Prior to mid-2013, the index had not risen to 50 since mid-2006.