Homebuilder confidence jumps despite supply shortages
Confidence rose 4 points to 80
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Homebuilder confidence rose for a second month in October as strong consumer demand helped offset rising materials prices and shortages.
The National Association of Home Builders/Wells Fargo Housing Market Index this month rose four points to 80. Analysts surveyed by Refinitiv were expecting confidence to remain unchanged at 76.
The index can range between 0 and 100 with any print over 50 indicating positive sentiment. Any reading above 80 signals strong demand.
"Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices," said NAHB Chairman Chuck Fowke.
All three of the major indexes gained in October.
The index for current sales jumped five points to 87 while the component measuring sales expectations over the next six months increased three points to 84. The measure of prospective buyer traffic climbed four points to 65.
The three-month moving average for builder sentiment rose one point to 69 in the Midwest and held steady at 72 in the Northeast. Readings for the South and West were unchanged at 80 and 83, respectively.
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This week is a busy one for housing data. Housing starts and building permits are due out on Tuesday and existing home sales will cross the wires on Thursday.