The National Association of Home Builders’ Housing Market Index measures how confident builders are in the market for new homes. In January, the index saw its second straight monthly improvement, as home builders expressed growing optimism about current sales conditions and prospects for the first half of the year. Alicia Huey, NAHB’s chairman, says the gains are due to lower interest rates. “Lower interest rates improved housing affordability conditions this past month, bringing some buyers back into the market after being sidelined in the fall by higher borrowing costs,” Huey said. “Single-family starts are expected to grow in 2024, adding much needed inventory to the market.” The index – which is scored so that any number above 50 indicates more builders feel conditions are good than poor – rose seven points in January to 44, with the component measuring expectations for the next six months up 12 points to 57 – the first time it reached positive territory since August. (source)
