February’s builder confidence levels grew four points to a level of 48 on the National Association of Home Builders/Wells Fargo Housing Market Index. It marks the highest level of builder confidence since August 2023.
“Buyer traffic is improving as even small declines in interest rates will produce a disproportionate positive response among likely home purchasers,” NAHB Chairman Alicia Huey said in a statement. “And while mortgage rates still remain too high for many prospective buyers, we anticipate that due to pent-up demand, many more buyers will enter the marketplace if mortgage rates continue to decline this year.”
Builder confidence levels 50 and above indicates more builders view home sales and sales expectations as “good” than “poor.”
