Home builder's confidence is a key market data, that has shown continued improvement throughout the past couple of years and it should not be ignored.
- Well before 2008/09 crisis, US home builders' confidence started deteriorating rapidly back in 2006, which makes the index surely a must watch.
Last night, US home builders confidence, which is measured by National Housing Board's Housing market index which almost touched highest level, observed during 2006 boom. Reading was 61.
After rising rapidly, the index has been consolidating since 2013, unable to break above 60 mark. Uncertainty related to FED rate hike might have suppressed the index. With first rate hike taken care of US housing market likely to have some boom time ahead.
In spite of rate rise, interest rates on mortgages remain less of a concern to new buyers, instead they suffer from lack of availability of mortgages, which partially has been hindered by rate hike uncertainty from FED.
Housing market in US is likely to have much better days ahead, when wages actually start rising.
