US homebuilder confidence advanced in October to an all-time high as record-low interest rates continued to fuel sales and the demand outlook.
A gauge of builder sentiment climbed to 85, the highest in records back to Y 1985, from 83 a month earlier, according to the National Association of Home Builders/Wells Fargo Market Index released Monday.
The October reading was stronger than the median forecast of 83 in a survey of economists, and marked the 6th month running builder sentiment has exceeded the consensus estimate.
The booming housing market is a bright spot for the economy since the virus lockdowns eased.
Declining mortgage rates are making it easier for buyers interested in purchasing larger homes or relocating to suburbs as houses are increasingly viewed as remote workplaces in light of the medical emergency chaos.
Homebuilders’ continuing optimism has driven an index of homebuilder stocks to a record high. The index has is up 170% from this year’s low in March.
Monday, the US benchmark indexes finished at: DJIA -410.89 to 28195.36, NAS Comp -192.67 to 11478.81, S&P -56.89 to 3426.92
Volume: Trade on the NYSE came in moderate at 834-M/shares exchanged.
HeffX-LTN’s overall technical outlook for the major stock market indexes is Bullish with a Very Bullish bias.
- NAS Comp +27.9% YTD
- S&P 500 +6.1% YTD
- DJIA -1.2% YTD
- Russell 2000 -3.3% YTD
Looking Ahead: Housing Starts and Building Permits report for September is scheduled to be released Tuesday
Have a healthy day, Keep the Faith!