…signaling that the worst of the economic downturn is over as the country reopens after C-19 coronavirus chaos lockdowns.
The National Association of Home Builders/Wells Fargo Housing Market Index rose 7 pts to 37 in May after a record fall in April. June’s increase was the biggest on record for the index and followed a 7-pt uptick in June.
The closure of nonessential businesses in mid-March led to record job losses in April and a collapse in manufacturing output and retail sales.
Other indicators have told us that at a rebound in housing activity, with mortgage applications rising in recent wks. Homebuilder confidence is on the rise suggesting the housing market recovery is running parallel to The People going back to work.
“As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand will strengthen,” said NAHB’s Chief Economist.
The survey’s measure of current sales conditions rose 6 pts to 42. Its gauge of sales expectations in the next 6 months rose 10 pts to 46. The prospective buyers index increased 8 pts to 21 this month.
Confidence increased among homebuilders in the Midwest, South and West, but fell in the Northeast.
Home building and sales are Key elements to the US economy and the jobs generated are skilled and highly paid embracing at lease 54 supplyside industries.
Wednesday, Investors will receive Housing Starts and Building Permits for May and the weekly MBA Mortgage Applications Index.
Have a healthy day, Keep the Faith!