Homebuilder Confidence in U.S. Rose to Seven-Year High in June
By Jeanna Smialek - Jun 17, 2013 10:00 AM ET
Confidence (USHBMIDX) among U.S. homebuilders surged in June to the highest level in seven years, reflecting gains in sales as Americans rushed to take advantage of low mortgage rates.
The National Association of Home Builders/Wells Fargo index of builder sentiment rose 8 points, the biggest monthly increase since September 2002, to 52 during the month, the Washington-based group reported today. The reading, the highest since March 2006, exceeded all 50 forecasts in a Bloomberg survey in which the median was 45. Readings above 50 mean more respondents said conditions were good.
“Builders are experiencing some relief in the headwinds that are holding back a more robust recovery,” David Crowe, the group’s chief economist, said in a statement. “Today’s report is consistent with our forecast for a 29 percent increase in total housing starts this year.”
Low mortgage rates, a strengthening job market and limited inventories are benefiting builders including PulteGroup Inc. and Lennar Corp. (LEN) as the housing market contributes to growth this year after emerging as a bright spot in 2012. Gains in housing will help the world’s largest economy move through a global slowdown that is hurting manufacturing.
A report today showed manufacturers in the New York region felt more optimistic in June even as orders, sales and employment dropped, indicating the area’s factories are looking beyond the current slowdown in growth.
more:
http://www.bloomberg.com/news/2013-06-17/homebuilder-confidence-in-u-s-rose-to-seven-year-high-in-june.html
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