Advisors Mortgage Group > Market Updates > Builder Optimism Growing in 2024

The National Association of Home Builders released their Home Builder Sentiment index, and it showed that home builder confidence has increased due mostly to falling interest rates. The overall index increased 7 points from 37 to 44. This was a significant increase and the highest the level has been since September. Builders are citing that improving rates have brought sidelined buyers back to the market and boosted builders’ future sales expectations.

Looking at the index a little more closely, current sales also jumped 7 points from 41 to 48, future expectations of sales leaped 12 points to 57, and buyer traffic increased from 24 to 29. A level below 50 shows less optimism and confidence and a level above 50 shows expansion and more confidence. Plus, 31% of builders are still reducing prices to encourage sales, providing even more opportunities for buyers right now.

This NAHB index is looking the same as it was at the beginning of 2023 where it started lower and then began to rebound and build momentum into the spring homebuying market. It appears the NAHB index and the subcategories are certainly trending in the right direction, and it looks like the worst is behind us as the new home market is set for improvement in 2024.

Source : https://bit.ly/439ksm7

By: Jon Iacono