Builder confidence in the market for newly built, single-family homes in September increased six points to 65 from August’s 59 on the National Association of Home Builders Housing Market Index.
The HMI consists of three components, all three of which moved higher in September. Current sales expectations rose six points to 71, sales expectations over the next six months increased five points to 71, and prospective buyer traffic posted a four-point increase to 48.
"With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them," said NAHB Chief Economist Robert Dietz in a statement. "Though solid job creation and low interest rates are also fueling demand, builders continue to be hampered by supply-side constraints that include shortages of labor and lots."
