The housing market is experiencing a resurgence, as builders are becoming increasingly optimistic about the future of the industry. This optimistic outlook is largely attributed to the recent drop in mortgage rates. With mortgage rates at their lowest levels in years, home buyers, and builders, are now able to take advantage of low rates, which usually translates to an increase in sales, and new construction starts.
Though the outlook is becoming increasingly positive, builders remain cautious with regards to the current state of the economy. With the global economy slowing and an upcoming US presidential election, there are still myriad of uncertainties surrounding the industry. Further, the drop in mortgage rates is mainly attributed to the Federal Reserve’s decision to cut interest rates, as opposed to fundamental changes in the housing market.
Even with the potential difficulties ahead, there are still reasons to be optimistic. According to recently released data, the number of existing home sales has increased. Additionally, the National Association of Home Builders’ (NAHB) latest Survey reported that homebuilder confidence is still at a high point. With a level of 72, the NAHB’s index is at the highest it has been since December 2017, and is higher than the index was even before the pandemic began.
These factors, combined with recent trends in the market, paint a positive picture for the industry. In the upcoming months, mortgage rates are expected to remain low, and builders are expected to remain optimistic. While conditions may be far from certain, current market trends indicate that the industry is on the upswing.
You can read this full article at: https://www.housingwire.com/articles/builders-are-feeling-cautiously-optimistic-thanks-to-lower-mortgage-rates/(subscription required)
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