Homebuilder confidence rose in September after falling to its lowest level in 13 months in August, according to the NAHB/Wells Fargo Housing Market Index (HMI), although optimism was overshadowed by difficulties and building materials supply chain issues.
According to the HMI measure, among single-family home builders, there was a single point increase in September to 76. In April 2020, builder sentiment fell to 30 in April 2020, when the pandemic lockdown sent the economy into a tailspin. It reached a record high on the back of an economic rebound, before seeing a gradual decline in November of that year.
“Builder sentiment is slowly cooling off since HMI hit an all-time high of 90 last November,” NAHB President Chuck Fowke said in a statement. “September figures show stagnation as some construction material costs pose easing challenges, especially for softwood lumber. However, delivery times are extended and chronic construction labor shortages are expected to persist as the overall labor market improves. Is.
According to the NAHB, lumber is down more than 60 percent from its May peak, but overall residential building material costs rose 13 percent on a yearly basis in the first eight months of this year. When combined with the recent spurt in home prices, builders see housing affordability as an issue in the coming months.
“The single-family construction market has moved away from the continued warm pace of construction last fall and has reached a still warmer but more stable level of activity,” Robert Dietz, chief economist at NAHB, said in a statement.
“While the challenges of building materials remain, the rate of cost increase has been low for some products, but the rate of job openings in construction remains high,” Dietz said.
Job opportunities in the United States hit a record high of more than 10 million on the last day of July, while hiring fell by more than 4 million, driven by economic recovery held back by businesses struggling to fill vacancies. paints a picture of. .
Construction hiring rose to 384,000 in July, up from 371,000 in June to 384,000, according to the Labor Department’s Job Opening and Labor Turnover Survey (JOLTS), released on September 8. The report also revealed that the total number of job vacancies increased from 749,000 to 10.9 million. Last day of July, with 321,000 openings in construction.
Mortgage rates remain at historic lows, fueling homebuyer interest.
Greg McBride, Chief Financial Analyst at Bankrate, told The Epoch Times in an emailed statement, “Homeowners can refinance to absorb rising home costs seen in other regions in this long run of ultra-low mortgage rates by refinancing and generating meaningful monthly savings. may be able to capitalize on the period.”
Households have been hit hard by inflationary pressures in recent months, with inflation running well above the Federal Reserve’s target of about 2 percent.
Reuters contributed to this report.
This News Originally From – The Epoch Times