Builder Confidence Increases for Second Consecutive Month in October

The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes edged 4-points higher in October to a reading of 80. This marks the second consecutive upward movement in the HMI. Builder confidence topped at a level of 90 in November 2020. Any reading above 50 indicates that more builders view conditions as good rather than poor and that demand remains strong.

In remarks prepared for the release of the October HMI, NAHB Chairman Chuck Fowke, a custom home builder from Tampa Florida, said, “Although demand and home sales remain strong, builders continue to grapple with ongoing supply chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices.”