NAHB US housing market index rises in March
The National Association of Housebuilders' housing market index increased to 51 in March, up from 48 in February and beating forecasts for a flat month-on-month reading.
March's index showed the strongest confidence level in eight months, with a lack of existing inventory continuing to drive buyers to new home construction, while demand also increased after mortgage rates fell below last autumn's cycle peak.
The NAHB also said the gauge for current sales conditions increased four points to 56, while the component measuring sales expectations in the next six months rose two points to 62 and the component gauging traffic of prospective buyers increased two points to 34.
NAHB chief economist Robert Dietz said: "With the Federal Reserve expected to announce future rate cuts in the second half of 2024, lower financing costs will draw many prospective buyers into the market. However, as home building activity picks up, builders will likely grapple with rising material prices, particularly for lumber."
Reporting by Iain Gilbert at Sharecast.com