Homebuilder Confidence in U.S. Increases to Fresh Record High
U.S. homebuilder confidence advanced in October to a fresh all-time high as record-low interest rates continued to fuel sales and the demand outlook.
A gauge of builder sentiment climbed to 85, the highest in records back to 1985, from 83 a month earlier, according to the National Association of Home Builders/Wells Fargo Market Index released Monday. The October reading was stronger than the median forecast of 83 in a Bloomberg survey of economists, and marked the sixth straight month builder sentiment has exceeded the consensus estimate.
The booming housing market has been a bright spot for the economy since the coronavirus lockdowns eased. Declining mortgage rates are making it easier for buyers interested in purchasing larger homes or relocating to suburbs as houses are increasingly viewed as remote workplaces in light of the pandemic.
Homebuilders’ continuing optimism has driven an index of homebuilder stocks to a record high. The index has surged about 170% from this year’s low in March.