Last month, the National Association of Home Builders’ Housing Market Index – which measures builders’ confidence in the market for newly built, single-family homes – dropped 42 points to 30, on a scale where any number below 50 indicates more builders see conditions as poor than good. It was the first time the index fell below 50 in more than five years. But despite registering the largest one-month change in its history, the index has already begun to bounce back. In fact, the most recent results show a seven point increase month-over-month, with the component measuring expectations for the next six months up 10 points to 46. It’s another indication that the housing market may already be rebounding. Robert Dietz, NAHB’s chief economist, says low mortgage rates are helping keep buyers interested. “Low interest rates are helping to sustain demand,” Dietz said. “As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand will strengthen.” Regionally, only the Northeast saw a decline, while the Midwest, West, and South posted gains between seven and 12 points. (source)
