Homebuilder confidence has improved to reach the highest level in eight years. The NAHB/ Wells Fargo Housing Market Index has touched 59 in August from a low of 56 in July. The continued improvement in the sentiment has been helped by the rising house prices in many states across the country.
The real estate prices have firmed up in various regions and also the number of deals has gone higher. If the markets continued to show improvement, the building activity will see further rise. The housing market index has gone higher for fourth month. In November 2005, the housing market index was at 61. Reading above 50 means that more number of builders are considering the market conditions better.
Mortgage rates have also shown improvement since May. The recovery in housing market has helped the homebuilder sentiment to remain strong. The economic growth and lower number of jobless people will improve investor sentiment and the housing sector experts are expecting better times in future.
The average rate for 30-year fixed mortgage has gone higher from a low of 3.35 percent in May 2013 to 4.4 percent in August. Supply constraint has been termed as an important factor in the firming up of real estate prices.
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