Confidence among homebuilders climbed in August as steady job growth and low interest rates boosted prospects for the residential real estate market in the second half of the year, according to data Monday from the National Association of Home Builders/Wells Fargo.
The builder sentiment gauge rose to 60 from a revised 58. Readings greater than 50 indicate more respondents reported good market conditions and the August figure matched the median forecast. The measure of the six-month sales outlook rose to 67 from 66, while the index of current sales climbed 2 points to 65. The gauge of prospective buyer traffic eased to 44 from 45.
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"Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July," NAHB chief economist Robert Dietz said in a statement. "Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year."
Confidence improved in the South and Northeast, while sentiment dropped in the Midwest to its weakest since May 2015, and eased in the West.