Confidence Among U.S. Homebuilders Increases to Five-Month High
Source: Bloomberg
Confidence among U.S. homebuilders climbed to a five-month high in June, signaling the residential real-estate market may have some scope for a pickup, according to data Thursday from the National Association of Home Builders/Wells Fargo data.
Key Points
Builder sentiment gauge rose to 60 from 58
Median forecast in a Bloomberg survey was 59; Readings greater than 50 indicate more respondents reported good market conditions
Gauge of prospective buyer traffic advanced to 47, the highest since November, from 44
Measure of six-month sales outlook increased to 70, the strongest since October, from 65, while index of current sales rose by 1 point to
Big Picture
Cheap borrowing costs and and steady improvement in the labor market have bolstered Americans abilities to buy homes, giving builders reason to be more optimistic. A pickup in wage growth will be needed to give additional households the confidence to buy and, in the process, lend a hand to economic growth.
Economist Takeaways
"Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016," NAHB Chief Economist Robert Dietz said in a statement.
Read more: http://www.bloomberg.com/news/articles/2016-06-16/confidence-among-u-s-homebuilders-increases-to-five-month-high