Economic IndicatorsTop News

U.S. homebuilder confidence rises in May

imageEconomic Indicators5 hours ago (May 18, 2020 10:05AM ET)

(C) Reuters. FILE PHOTO: A new apartment building housing construction site is seen in Los Angeles

WASHINGTON (Reuters) – Confidence among U.S. single-family homebuilders rose in May, potentially signaling that the worst of the economic downturn was probably over as the country gradually reopens after lockdowns to slow the spread of the novel coronavirus.

The National Association of Home Builders/Wells Fargo Housing Market Index rose seven points to 37 this month after a record plunge in April. The closure of nonessential businesses in mid-March to limit the spread of COVID-19, the respiratory illness caused by the virus, led to record job losses in April and a collapse in manufacturing output and retail sales.

Other indicators have also hinted at a rebound in housing activity, with mortgage applications rising in recent weeks. Still, homebuilder confidence remains low, suggesting the housing market recovery will be slow amid record unemployment.

“As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand will strengthen,” said NAHB Chief Economist Robert Dietz. “However, high unemployment and supply-side challenges including builder loan access and building material availability are near-term limiting factors.”

The survey’s measure of current sales conditions rose six points to 42. Its gauge of sales expectations in the next six months jumped 10 points to 46. The prospective buyers index increased eight points to 21 this month.

Confidence increased among homebuilders in the Midwest, South and West, but fell in the Northeast.

U.S. homebuilder confidence rises in May

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button