Economic Report: U.S. builder confidence rises for second consecutive month, to highest level since September 2022 

by | Feb 15, 2023 | Stock Market

The numbers: The National Association of Home Builders’ (NAHB) monthly confidence index rose 7 points to 42 in February, the trade group said on Wednesday. This is the second month in a row that sentiment has improved among builders. The jump in confidence in February was more than what analysts had expected. Economists polled by The Wall Street Journal expected the index to rise to 37.

The February reading of 42 was the strongest since September 2022, the NAHB said. The last time builder sentiment rose by this magnitude was in June 2013. A drop in mortgage rates boosted sentiment, despite builders continuing to deal with high construction costs and supply chain delays. The bump in confidence signals that “the housing market may be turning a corner,” the NAHB said. A year ago, the index stood at 81. Key details: All three gauges that underpin the overall builder-confidence index rose for the second month in a row.
The gauge that marks current sales conditions rose by 6 points. 

The component that assesses sales expectations for the next six months rose by 11 points.

And the gauge that measures traffic of prospective buyers rose by 6 points.

Builders in all four regions reported an increase in confidence, the NAHB said, led by the Northeast and South, where the index moved up 4 points, followed by the West and Midwest.  Buil …

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