The year begins with an increase in builder confidence as mortgage rates fell well below 7% over the last month, according to a report from the National Association of Home Builders.
In fact, builder confidence for newly built single-family homes climbed to 44 in January, up seven points. This marks the second consecutive monthly increase in builder confidence. This increase is closely tied to falling interest rates., according to the NAHB Wells Fargo Housing Market Index (HMI).
"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," said Alicia Huey, NAHB chairman and custom home builder and developer from Birmingham, Ala.
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