May 18, 2009

Builder confidence rising

The National Association of Home Builders said builder confidence improved in May, with the Housing Market Index rising two points to 16.

Builders are responding to what they perceive to be some of the best home-buying conditions of a lifetime, said NAHB Chairman Joe Robson.

With historically low mortgage interest rates, affordable prices and a large amount of homes on the market you have a very appealing set of reasons to make a move, he said.

Nationally, two indexes improved this month. Current sales rose two points to 14 and the index gauging six-month sales expectations rose three points to 27.

Broken down into regions, the index gained three points to 18 in the Northeast. It gained one point to 18 in the South and four points to 12 in the West. In the Midwest, the index was unchanged at 14.

The index, begun with a score of 50 in Jan. 1985, peaked at 78 in 1998 and hit its lowest score of eight in January this year. It jumped five points from nine to 14 a month ago.