US homebuilder sentiment edges higher in May, NAHB says
By Alexander Bueso
Date: Monday 15 May 2017
(ShareCast News) - Homebuilder sentiment in the States turned higher in May reassuring economists on the outlook for activity in the sector.
The National Association of Homebuilders/Wells Fargo Housing Market Index rose from 68.0 points in April to a reading of 70.0 for May.
"The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward," NAHB chief economist Robert Dietz said.
A sub-index linked to sales expectations for the next six months rose from 75.0 to 79.0, with another referencing current conditions rising from 74.0 to 76.0.
Another gauge linked to buyer traffice however slipped from 52.0 to 51.0.
Activity was stronger in all regions save in the Midwest, with the corresponding regional HMI unchanged at 68.0.
HMIs for the Northeast and South each rose by three points to 49.0 and 71.0, respectively, and that for the West by one point to 78.0.
"The increase in expectations probably reflects the recent upturn in mortgage demand, but we have seen too many false starts in these numbers to get unduly excited at this point. Still, the NAHB does tend to lead new home sales by a few months, so this report points to a decent increase in activity over the summer," said Ian Shepherdson, chief US economist at Pantheon Macroeconomics.
"While we expect a slight moderation in housing activity in the near term owing to higher mortgage rates, the picture for 2017-18 remains one of modest trend improvement. We view homebuilder sentiment at current levels as consistent with our view of a continued, albeit modest, housing market recovery," said Blerina Uruci at Barclays Research.
Special promo:
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange
Market.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN