U.S. Homebuilder Confidence Rises to Highest Since June 2005

Confidence among U.S. homebuilders is the strongest since the mid-2000s housing boom as sales prospects improve despite rising mortgage rates, according to data Wednesday from the National Association of Home Builders/Wells Fargo.

The NAHB index has jumped since President Donald Trump’s election victory, as optimism for his plans to cut regulations and boost growth blunted the typical cooling effect of rising interest rates. While the 30-year fixed mortgage rate is at a 10-week high, borrowing costs are still low by historical standards, and the economy and labor market continue to grow at a steady pace. The group said developers also were buoyed by Trump’s February directive to rescind an Obama-era environmental rule affecting building permits.