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Builder confidence is holding steady, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The Index in October is 68, a one-point rise from September. An above-50 reading indicates more builders have a positive outlook than a negative one.

“Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment,” said Randy Noel, chairman of the NAHB, in a statement. “Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they need to manage supply-side costs to keep home prices affordable.”

“Favorable economic conditions and demographic tailwinds should continue to support demand, but housing affordability has become a challenge due to ongoing price and interest rate increases,” said Robert Dietz, chief economist at the NAHB. “Unless housing affordability stabilizes, the market risks losing additional momentum as we head into 2019.”

Source: National Association of Home Builders (NAHB)

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