Optimism among the nation’s home builders remained at the lowest level in 10 months. Holding back an improvement was a drop in confidence about how strong future sales will be.
The
Housing Market Index for the month of March came in at 58. An index level in excess of 50 indicates that more home builders are optimistic than those who see conditions as poor.
There was no change compared to the prior month in the index, which is derived from a monthly survey that factors in prospective home buyer traffic, current sales and expected sales.
Historical data from
the National Association of Home Builders and Wells Fargo, which jointly produce the index, indicate that the index is at its lowest level since May 2015.
But the
HMI has risen from March 2015, when it was just 52.
A gradual market improvement is expected by NAHB Chief Economist David Crowe.
“Solid job growth, low mortgage rates and improving mortgage availability will help keep the housing market on a gradual upward trajectory in the coming months,” Crowe stated in the report.
The buyer traffic component of the index improved by four points this month, though it still stands at just 43.
Builders are most optimistic about current sales conditions, with that component of the index at 65. There was no change from February.
Expected future sales left builders a little less confident, with that component of the HMI down three points from a month earlier to 61 in the latest report.
By region, a three-month rolling average for the HMI was down a point during March in the Northeast to 46 — the lowest of any region.
A one-point gain left the index at 58 in the Midwest, while the South was unchanged at 59, and the West dropped three points to 69.
