Unusually strong housing demand continues to rally homebuilder confidence, according to CNBC.
Homebuilders stay confident: The demand for new homes continues to rise despite supply-chain disruptions and ongoing labor shortages.
- “While demand remains strong, finding workers, predicting pricing and dealing with material delays” remains a hurdle, according to the National Association of Home Builders.
By the numbers: Builder confidence in the single-family housing market rose one point to 84 in December, on the National Association of Home Builders/Wells Fargo Housing Market Index. This is the fourth consecutive increase and ties with February for the highest level of the year, with anything above 50 considered positive. Current sales conditions rose one point to 90, and buyer traffic jumped one point to 70. Sales expectations in the next six months remained at 84, unchanged for the third consecutive month.
- Regional scores increased by four points to 74 for the Northeast, by two points to 74 for the Midwest and by three points to 87 for both the South and West.
Looking ahead: Mortgage rates are also expected to rise, as the Fed eases support for mortgage-backed bonds to supplant surging inflation. Meanwhile, higher interest rates in 2022 may dampen housing affordability.