The National Association of Home Builders’ monthly report today showed that the headline sentiment index stayed unchanged at 67 in September to come in slightly better than the analysts’ expectation of 66. Below is FXStreet Senior Analyst Joseph Trevisani’s assessment of the publication.
“The main sentiment gauge was unchanged at 67, slightly better than the consensus estimate at 66 and the weakest since last September. In December confidence among new home builders had peaked at 74, a 20 year high and the completion of a 13 year collapse and return cycle that began in July 2005 with deflation of the housing bubble.”
“The sales outlook rose to 74 from 72, the first gain since February and the current-sales index moved up one to 74.”
“Home buyers this year have been caught between rising mortgage rates and a limited supply of new homes which have driven prices higher and the robust job market and the tax cuts which provide incentive and cash for the long term investment of buying a home.”
“Mortgage rates have jumped sharply this year. A 30-year fixed rate loan was 4.16 percent in the middle of December. The same loan was 4.84 percent at the end of last week.”
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