Homebuilders: Foundation for a recovery
U.S. homebuilders in August added new homes at the fastest pace in 28 months. The National Association of Home Builders/Wells Fargo builder sentiment index rose to 40 in September, the highest level since June 2006. The index had reached a record low of 8 in January 2009. A combination of limited inventory of existing homes and record low mortgage rates are drawing buyers into the market and bolstering homebuilders, including Toll Brothers. David Crowe, NAHB’s chief economist, says some homebuilders are concerned about rising materials costs, availability of buildable lots, and the fragile nature of the recovery.
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