Julie Campbell Home Mortgage Loans Brigham City Utah

Home Mortgage Loans

  • Home
  • About
    • About Julie
    • Privacy Policy
  • Mortgage Info.
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Interest Rates
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortagage Glossary
    • Mortgage FAQ
  • Apply
  • Blog
  • Contact Us
You are here: Home / Housing Analysis / Homebuilder Confidence Rises To 5-Year High

Homebuilder Confidence Rises To 5-Year High

August 16, 2012 by Julie Campbell

NAHB HMI 2010-2012Home builder confidence rises again.

For August 2012, the National Association of Homebuilders reports the monthly Housing Market Index at 37 — an increase of more than 100% from one year ago and the highest HMI value since February 2007.

The Housing Market Index is an indicator of homebuilder confidence and when it reads 50 or better, the HMI suggests favorable conditions for home builders. Readings below 50 suggest unfavorable conditions for builders.

Despite the recent rise in home builder attitudes, however, the Housing Market Index remains mired below 50 where it’s been since April 2006.

For new construction home buyers in Hooper , the HMI may offer insight into the market for new homes through the end of this year. This is because the NAHB Housing Market Index is a composite survey, meant to gauge builder sentiment in three specific areas — current business, future business, and buyer activity.

When all three fronts are rising, it points to an improving market for sellers (i.e. home builders). Unfortunately, though, what’s good for sellers can be damaging to buyers. Builders are less willing to make concessions on price or product when markets are getting stronger.

In August, home builders saw strength across all three categories :

  • Current Single-Family Sales : 39 (+3 from July)
  • Projected Single-Family Sales : 44 (+1 from July)
  • Buyer Foot Traffic : 31 (+3 from July)

Especially noteworthy in the August HMI is that builders project more sales for the next six calendar months than they have projected at any time in the last 5 years. With mortgage rates at all-time lows and buyer foot traffic growing, it’s no wonder confidence is high.

When demand for homes is strong amid stagnant or falling supplies, home prices rise and that’s exactly what we’re seeing in many U.S. markets. It’s a good time to be a Utah home buyer today, but market momentum appears to be shifting.

If you’re in the market for a newly-built home, therefore, the best “deal” may be the one you get today. Next year, your costs may be higher. 

Filed Under: Housing Analysis Tagged With: HMI, Housing Market Index, NAHB

Julie Campbell

Contact Julie

Loan Officer


Intercap Lending
Brigham City, UT
Call (801) 388-6732
Personal NMLS# 299573
Download the Homebuyer App

Connect with Me

How can I help?

  • This field is for validation purposes and should be left unchanged.

Perfect Listing Presentation

Categories

Quick Links

  • Accessibility Statement
  • Privacy Policy
  • Licensing
  • Complaints
  • About Julie
Equal Housing Lender
Intercap Lending NMLS# 190465
• nmlsconsumeraccess.org

Our Location


112 N Main
Brigham City, UT 84302

Copyright © 2023 · Powered by MySMARTblog