According to a recently released report by National Association of Home Builders, home builders are regaining their confidence in U.S. The February data showed that the confidence is improving as there are more favorable buying conditions and the job market is seeing recovery.
The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) was reported 17 in the month of February posting a growth of 2 points from 15 in January. The growth of the HMI beat the expectations as most analysts were expecting the sentiments to be posted at 16. The improved index is reflecting an improvement in builder confidence in the market. The demand for the new homes is increasing mainly because of the low interest rates and federal tax credits.
NAHB Chairman Bob Jones said, “Continued low interest rates, very attractive home prices that appear to have stabilized in many markets, and the availability of the home buyer tax credit make this an opportune time for potential purchasers.”
According to the report two out of three of HMI component indexes also grew in the month of February. The component which estimates the current sales conditions rose two points to 17, while the component estimating the sales expectations in the next six months rose a single point to 27. The component which did not grow was the component estimating the traffic of prospective buyers. It was reported at 12, the same level where it was last month.