SOME POSITIVE NEWS
There may have been a hint of good news last week out of the United States, where builder confidence in the market for newly built, single-family homes rose by three points to 20 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for November.
The gain builds on a revised three-point increase in October, and brings the confidence gauge to its highest level since May of 2010.
“While this second solid monthly gain on the builder confidence scale is encouraging, the overall measure remains quite low due to the many challenges that home building continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers,” said Bob Nielsen, NAHB Chairman and a home builder from Reno, Nev. “These problems must be addressed so that housing can contribute to economic and job growth the way it has in the past.”
“This second consecutive gain in the HMI is evidence that well-qualified buyers in select areas are being tempted back into the market by today’s extremely favorable mortgage rates and prices,” said NAHB Chief Economist David Crowe. “We are anticipating further, gradual gains in the builder confidence gauge heading into 2012 due to these pockets of improving conditions that are slowly spreading.”
In other news from south of the border, the NAHB today applauded Congress for reinstating for another two years the higher conforming loan limits for the Federal Housing Administration (FHA), noting that this is an important step to help mend the struggling housing market.
“We commend congressional leaders in both parties and each chamber of Congress for taking this action to boost overall mortgage liquidity in the marketplace, create jobs, and provide home owners and home buyers with safe and affordable financing,” said the NAHB’s Nielsen. “Restoring the higher FHA loan limits will help to stabilize home values, provide constancy while private investors re-enter the market, and enable millions of creditworthy consumers to get home loans with the best mortgage rates and lowest fees and downpayment requirements,” he added.
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