U.S. Homebuilder Outlook Eases While Hovering Near 18-Year High
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Confidence among U.S. homebuilders slipped to a four-month low in March while remaining above historical averages, indicating developers expect demand to withstand rising mortgage rates, according to data from the National Association of Home Builders/Wells Fargo.
Even with the decline, homebuilder confidence remains buoyant after hitting an 18-year high in December. Developers still expect strong demand for new homes as low unemployment and steady economic growth support Americans’ buying power. Optimism rose in three out of four geographic regions. At the same time, rising interest rates pose a headwind, as steeper mortgage payments could deter some prospective buyers.