Economic uncertainty has home builders concerned but an early-spring mortgage rate retreat helped bump builder confidence higher, according to the latest results of the National Association of Home Builder index. The index, based on a monthly survey, measures how optimistic home builders are on a scale where any number above 50 indicates more builders view conditions as good than poor. In April, the index bumped up one point to 40. Buddy Hughes, NAHB’s chairman, says builder confidence was helped by rates. “The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,” Hughes said. “At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.” Despite the challenges, the index component measuring current sales conditions rose two points in April. (source)
