Homebuilder Sentiment Soars as Mortgage Rates Plummet

Builder confidence in the market for newly built single-family homes rose in December, ending a four-month decline, as falling mortgage rates attracted prospective buyers who were previously priced out of the market. The National Association of Home Builders (NAHB) reported that builder sentiment increased by three points to 37. The rise in confidence is supported by recent economic data indicating improving housing conditions. However, builders continue to reduce home prices and offer sales incentives to boost sales, as mortgage rates remained above 7% in November.