30-Second Update:  Home Builder Confidence hits Seven Month High

The latest National Association of Home Builders Housing Market Index, which measures builder’s confidence in newly built, single-family homes, rose three points to 66 in May.  This is the highest reading since October of 2018.  To keep things in perspective, any reading above 50 is considered positive.  This report is a direct reflection of strong reported home sales, allowing builders to be more optimistic about the housing market.   Economists use this index to gauge the status of the home building industry.  If builders are more confident in the housing market, they will be more likely to break ground on more houses, which would lead to more jobs and improve the economy as a whole.

Economists continue to cite the low interest rate environment, along with a strong labor market, and rising wages as key factors propelling the housing market.  Michael Murray, Chief Operating Officer of D.R. Horton stated, “We see that some of the demand that was displaced in the fall will probably elongate a selling season this year in the spring and into the early summer as those buyers have returned and more continue to come into the market, seeing it’s still a great time to buy a home.”