Home builders can be a pretty good gauge of where the housing market is headed. Because their business depends on knowing where and when buyers are looking to purchase a home, they’re generally good at reading market dynamics. That’s why the National Association of Home Builders keeps a monthly measure of builder confidence. If builders are optimistic and building more homes, it’s likely the overall market is in good shape. The NAHB’s Housing Market Index measures builder confidence on a scale where any number above 50 indicates that more builders view conditions as good than poor. In March, it rose three points to 51. It was the fourth consecutive monthly gain and the first time since last July that it’s been over 50. Carl Harris, NAHB’s chairman, says buyers are ready to move. “Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year,” Harris said. (source)
