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U.S. homebuilders bounced back from a recent funk, as current sales and sales expectations leaped forward. -
The National Association of Home Builders/Wells Fargo Housing Market Index now stands at 68. Anything above 50 is considered positive sentiment.
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Builders say they are seeing rising demand from buyers, who seem ready to pay a premium for new construction.
By Diana Olick | CNBC
U.S. homebuilders bounced back in August from a recent funk, as current sales and sales expectations leaped forward.
A monthly index of builder sentiment rose 4 points to the highest level since May. The National Association of Home Builders/Wells Fargo Housing Market Index now stands at 68. Anything above 50 is considered positive sentiment. The index was at 59 last August.
Builder sentiment had jumped to a cyclical high in March, following a move by the Trump administration to ease water regulations. Builders say over-regulation at the federal, state and local levels have hampered production and driven up the cost of new construction. Sentiment had dropped more recently due to rising material costs, especially lumber. The Trump administration imposed a tariff on Canadian lumber, causing the price to spike.
