Ekonomické zprávy
18.10.2021

U.S. builder confidence surprisingly increases in October

The National Association of Homebuilders (NAHB) announced on Monday its housing market index (HMI) came in at 80 in October, up from 76 in September. This marked the largest monthly increase since November 2020.

Economists had forecast the HMI to remain at 76.

A reading over 50 indicates more builders view conditions as good than poor.

All three of the major HMI indices recorded advances in early October. The indicator gauging current sales conditions surged 5 points to 87, while the component measuring traffic of prospective buyers increased 4 points to 65 and the measure charting sales expectations in the next six rose 3 points to 84.

NAHB Chairman Chuck Fowke noted: “Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices.”

Meanwhile, NAHB Chief Economist Robert Dietz said: “Builders are getting increasingly concerned about affordability hurdles ahead for most buyers. Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt. Policymakers must focus on fixing the broken supply chain. This will spur more construction and help ease upward pressure on home prices.”

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