Key Highlights
- Homebuilder sentiment jumped to biggest monthly surge ever, according to National Association of Home Builders/Wells Fargo Housing Market Index
- Jump from 37 points in May to 58 points in June
- Any reading above 50 indicates positive market
- Mortgage purchase applications for new builds also jumped +10.9% y/y in May, according to Mortgage Bankers Association
Homebuilders across the country are currently bullish about their businesses after buyer demand plunged at the beginning of the COVID pandemic.
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According to the National Association of Home Builders/Wells Fargo Housing Market Index, homebuilder sentiment skyrocketed 21 points in June to 58 points after collapsing 42 points to 30 in April. This increase of 21 points in June is the largest monthly increase ever for this barometer. Any reading over 50 points is considered to be an indication of a positive market.
Of the homebuilder index’s three components, sales conditions jumped 21 points to 63 points; sales expectations in the coming six months jumped 22 points to 68 points; and buyer traffic more than double from May to June from 22 to 43 points.
NAHB Chair Dean Mon said, “As the nation reopens, housing is well-positioned to lead the economy forward. Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising.”
And yes, mortgage purchase applications for newly built homes increased +10.9% annually in May, according to the Mortgage Bankers Association.
Such upticks in homebuilder sentiment and mortgage purchase applications are very good news.
Thanks to CNBC.
Also read: Weekly Purchase Applications Recover as Rates Hit Record Low, Check Out the Latest in World of Mortgages, Homebuilder Confidence Index Takes Biggest One-Month Dive Ever
