US: Builder confidence continues to climb – Wells Fargo

The NAHB Housing Market Index rose to 85 in October, surpassing expectations. Homebuilder confidence reached a record high, noted analysts at Wells Fargo. They point out low mortgage rates and an increased desire for more space continues to drive buyer traffic and sales.

Key Quotes: 

“The topline index beat consensus estimates and climbed two points to 85 during October, the highest on record. The rapid recovery in confidence is primarily owed to historically low mortgage rates and the ongoing shift in housing preferences for more livable space to adjust to new COVID norms.”

“Prospective buyer traffic was unchanged for the month. The sub-index is up 20 points over the past year, more than any other. Prospective buyers have more time to shop this year, given that travel is down and football game attendance is being severely limited, freeing up additional time on the weekends.”