Financial News: U.S. Homebuilder Confidence Improves Slightly More Than Ex

U.S. Homebuilder Confidence Improves Slightly More Than Expected In September

09/17/2024 - 10:23:00 (RTTNews)

(RTTNews) - A report released by the National Association of Home Builders on Tuesday showed homebuilder confidence in the U.S. improved by slightly more than expected in the month of September.

The report said the NAHB/Wells Fargo Housing Market Index rose to 41 in September from 39 in August. Economists had expected the index to inch up to 40.

The increase breaks a string of four consecutive monthly declines, with the index rebounding from its lowest level since hitting 37 last December.

"Thanks to lower interest rates, builders now have a positive view for future new home sales for the first time since May 2024," said NAHB Chairman Carl Harris. "However, the cost of construction remains elevated relative to household budgets, holding back some enthusiasm for current housing market conditions."

He added, "Moreover, builders will face competition from rising existing home inventory in many markets as the mortgage rate lock-in effect softens with lower mortgage rates."

The slightly bigger than expected increase by the headline index came as the component measuring sales expectations in the next six months jumped to 53 in September from 49 in August.

The gauge charting traffic of prospective buyers also rose to 27 in September from 25 in August, while the index charting current sales conditions inched up to 45 in September from 44 in August.

The NAHB said the latest HMI survey also revealed that the share of builders cutting prices dropped in September for the first time since April, edging down one point to 32 percent.

The average price reduction was 5 percent, marking the first time it has been below 6 percent since July 2022.

On Wednesday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of August.

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