Homebuilder confidence remains strong in May despite rising commodity prices, according to the latest National Association of Homebuilders /Wells Fargo Index (NAHB)
- Homebuilder confidence was unchanged from April at 83.
- The HMI index gauging current sales conditions held strong at 88, and sales expectations in the next six months rose one point to 81.
Regionally the West lead the way with an index rating of 90 followed by the South at 84, the Northeast at 82, and the midwest was at 75.
NAHB Chief Economist Robert Dietz said in a statement that low mortgage rates are keeping housing affordable despite rising costs. However, the rising costs are changing the behavior of builders, “In recent months, aggregate residential construction material costs were up 12% year over year, and our surveys suggest those costs are rising further. Some builders are slowing sales to manage their own supply chains, which means growing affordability challenges for a market in critical need of more inventory.”