Wow – great news for the economy! Home Builder sentiment posted the biggest monthly surge ever recorded!
It’s a great time to be a builder!
The home building industry is on fire. CNBC reported yesterday:
A faster-than-expected turnaround in homebuyer demand, following a sharp drop-off at the start of the coronavirus pandemic, has the nation’s homebuilders bullish on their business again.
Builder sentiment jumped a striking 21 points in June to 58, the largest monthly increase ever in the National Association of Home Builders/Wells Fargo Housing Market Index. Any reading above 50 indicates a positive market. In April, it plunged a record 42 points to 30.
“As the nation reopens, housing is well-positioned to lead the economy forward,” said NAHB Chairman Dean Mon, a homebuilder and developer from Shrewsbury, New Jersey. “Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising.”
Meanwhile, mortgage applications to purchase a newly built home jumped 10.9% annually in May, according to the Mortgage Bankers Association.
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Reports are that pressure treated lumber is virtually non-existent in many markets.
Pressure treated lumber is virtually non existent in many markets, due to demand far outstripping supply capabilities (these plants run 24/7, and don’t really “ramp up”).
Add in lowest-ever mortgage rates (30yr under 3%??!!) and it’s a great time to be a builder.
— Magic Matt (@DaFiendR) June 17, 2020