Homebuilders know the housing market. They have to if they hope to be successful. After all, knowing where and when buyers are looking to buy is their business. That's why the National Association of Home Builders conducts a monthly survey tracking builder confidence in the market for newly built homes. The survey is scored on a scale where any number above 50 indicates more builders view the market as good than poor. In April, the NAHB's Housing Market Index held steady at 50, unchanged from the month before.
Robert Dietz, NAHB's chief economist, says home buyers are watching rates before deciding whether or not to buy. “April's flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed,” Dietz said. “With the markets now adjusting to rates being somewhat higher due to recent inflation readings, we still anticipate the Federal Reserve will announce future rate cuts later this year, and that mortgage rates will moderate in the second half of 2024.”
[Source: NAHB]
