Homebuilder confidence hits record, helped by urban exodus
A 30-year fixed-rate mortgage is hovering around 2.62%
U.S. housing remains red-hot and that's good news for the nation's builders benefiting from record low-interest rates and those individuals leaving big cities for the suburbs.
MORTAGE RATES SIT AT RECORD LOWS
Builder confidence, in the market for newly built single-family homes, rose to a reading of 85 from 83 in September, the previous all-time high, according to the National Association of Homebuilders.
“The housing market continues to be a bright spot for the economy, supported by increased buyer interest in the suburbs, exurbs and small towns,” said NAHB Chief Economist Robert Dietz in a statement.
NYC, SAN FRANCISCO SEE RENTS FALL AS WORKERS FLEE
The data gave housing stocks a boost.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DHI | D.R. HORTON INC. | 163.13 | +0.82 | +0.51% |
| TOL | TOLL BROTHERS INC. | 151.91 | +0.16 | +0.10% |
| LEN | LENNAR CORP. | 168.22 | -0.49 | -0.29% |
Mortgage rates for a 30-year fixed-rate remain below 3% as the Federal Reserve keeps its foot on the stimulus pedal.
HIGH-TAX STATES NEED TO GET ‘CREATIVE’ TO LURE BACK WEALTHY RESIDENTS, EXPERT SAYS
On Monday, Federal Reserve Vice Chairman Richard Clarida said that additional fiscal and monetary support would be needed to aid the struggling U.S. economy, noting it could take another year before the economy returns to pre-pandemic levels.
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Fed officials have indicated they'll keep current policies in place until the economy stabilizes from the COVID-19 hit which should further benefit the housing the market.