U.S. homebuilders are feeling positive about the current housing market, but their level of confidence hasn’t moved in four months.
A monthly index of sentiment by the National Association of Home Builders (NAHB) registered 58 yet again in May. Fifty is the line between positive and negative sentiment. The index stood at 54 one year ago and hit a recent high of 65 last October.
Of the three index components, both current sales conditions and buyer traffic were unchanged at 63 and 44, respectively. The index measuring sales expectations over the next six months rose three points to 65.
“The fact that future sales expectations rose slightly this month shows that builders are confident that the market will continue to strengthen,” said NAHB Chief Economist Robert Dietz. “Job creation, low mortgage interest rates and pent-up demand will also spur growth in the single-family housing sector moving forward.”