The National Association of Home Builders’ Housing Market Index is a monthly measure of how confident builders are in the market for new homes. The index is scored on a scale where any number above 50 indicates that more builders view conditions as good than poor. In April, the index scored a 77, which indicates builders remain optimistic about the market. However, though still high, it fell two points from the month before, as affordability concerns are rising. “Despite low existing inventory, builders report sales traffic and current sales conditions have declined to their lowest points since last summer as a sharp jump in mortgage rates and persistent supply chain disruptions continue to unsettle the housing market,” Jerry Konter, NAHB’s chairman said. Affordability conditions have gotten more challenging over the past year. But while the index components measuring current traffic and sales conditions both fell from the month before, the gauge of sales expectations for the next six months increased three points to 73. Overall, it seems builders are optimistic but cautiously watching how increasing home prices, material costs, and mortgage rates will affect buyer demand as the spring and summer sales season gets into gear. (source)
