Builder confidence in the United States rose above expectations in February, with the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index jumping to 42 in the latest report on Wednesday. In comparison, the index stood at 35 in January, and February forecasts predicted 37.
Sales expectations increased 11 points to 48, while the gauge measuring traffic of prospective buyers grew six points to 29. "Even as the Federal Reserve continues to tighten monetary policy conditions, forecasts indicate that the housing market has passed peak mortgage rates for this cycle. And while we expect ongoing volatility for mortgage rates and housing costs, the building market should be able to achieve stability in the coming months, followed by a rebound back to trend home construction levels later in 2023 and the beginning of 2024," NAHB Chief Economist Robert Dietz said.
