Still, any reading below 50 indicates negative sentiment about the housing market. It hasn't reached 50 since April 2006, the peak of the housing boom.
Those who are in a position to buy are benefiting from lower prices and cheap mortgage rates. The average rate on the 30-year fixed mortgage has fallen below 4 percent twice this year.
David Crowe, the builders group's chief economist, said the group is expecting future gains in builder confidence for new homes heading into 2012. The group cites several regional pockets of strength as the main reason. New Orleans, Pittsburgh and other smaller metro areas have shown improvement, the trade group said.
Indeed, those who can buy homes nowadays are benefiting from the low prices of houses considering that many people are now putting their houses on the market.
ReplyDeleteIt's a good sign that the index rose to 20, and hoping that it will continue to rise, although I'm afraid it will be a long time coming. I know I've had a few deals within the last few months, where buyers were looking for the perfect parcel to build on, but the ability to get financing is much tougher. Both couples who originally started out looking for land to buy and build on, ended up changing their minds and buying existing housing. They were fortunate enough to find something that was similar to what they wanted to build, and the financing was easier for them to buy the existing home. Hopefully things will continue to get better, but with all the variables, it's going to be a long time coming.
ReplyDelete50 seems like it's a long way to go from where it's at right now. I know that our entire US economy needs a rise in housing confidence, I'm definitely sure of it in my Seattle homes market.
ReplyDeleteThose who are in a position to buy are benefiting from lower prices and cheap mortgage rates. The average rate on the 30-year fixed mortgage has fallen below 4 percent twice this year.
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