Economics
U.S. Homebuilder Optimism Makes Record Gain as Buyers Return
- Low rates and desire for space spur post-lockdown purchases
- Outlook turns positive as rebound continues after April plunge
A worker stands at a home construction site in Schenectady, New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
U.S. homebuilders’ outlook improved in June as record-low interest rates and demand for more space spurred buyers to re-emerge after the coronavirus shut down sales and construction.
A gauge of builder sentiment jumped to 58, a 21-point gain from May, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Analysts expected a reading of about 46, the average of 37 estimates compiled by Bloomberg. A rating above 50 is considered positive. June’s increase was the biggest on record for the index and followed a seven-point uptick in May.