Homebuilder sentiment rises in January for the first time in a year, thanks to lower mortgage rates
Sentiment rose 4 points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index
All three of the index’s components posted gains in January: current sales conditions rose 4 points to 40, sales expectations in the next six months increased 2 points to 37, and buyer traffic rose 3 points to 23
Both builders and consumers are likely responding to the recent drop in mortgage rates
“In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability,” said Robert Dietz, NAHB’s chief economist