Builder confidence in the market for newly built single family homes increased four points in February to a level of 62 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
NAHB Chief Economist Robert Dietz credited the uptick in builder confidence to growing consumer confidence and falling interest rates.
“However, affordability remains a critical issue,” Dietz added in a statement, noting rising costs from regulations, the labor shortage and tariffs on lumber and other building materials.
Regionally, the three-month moving averages for HMI scores in February showed a gain of one point in the Northeast to 63 and a fall of two points in the Northeast to 43. The Midwest and West remained the same at 52 and 67, respectively.
Confidence levels above 50 on the HMI are considered indicators of a positive housing market.
