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Home builders’ confidence in the new single-family housing market is harkening back to 2005, rising to a reading of 71 in the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI)—the highest level in 12 years. Index readings of 50-plus indicate more builders identify the market as “good” than “poor.”

“Builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting,” says Granger MacDonald, chairman of the NAHB.

The Index measure of sales expectations is up five points to 78, while the measure of current sales conditions is up seven points, also to 78. The measure of homebuyer traffic is up eight points to 54.

“While builders are clearly confident, we expect some moderation in the Index moving forward,” says Robert Dietz, chief economist of the NAHB. “Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor.”

Source: National Association of Home Builders (NAHB)

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