Home builders know the housing market. They have to, after all. Their business depends on knowing where and what buyers want. That’s why the National Association of Home Builders takes a monthly measure of how confident home builders feel about the market. The NAHB’s Housing Market Index measures builder confidence on a scale where any number above 50 indicates more builders view conditions as good than poor. In February, the index saw its third consecutive monthly increase, rising four points to 48. Alicia Huey, NAHB’s chairman, says decreasing mortgage rates have boosted optimism. “Buyer traffic is improving as even small declines in interest rates will produce a disproportionate positive response among likely home purchasers,” Huey said. “And while mortgage rates still remain too high for many prospective buyers, we anticipate that due to pent-up demand, many more buyers will enter the marketplace if mortgage rates continue to decline this year.” (source)
