Homebuilders Benefit from High Demand and Low Supply in US Housing Market

Homebuilders are the clear winners in the current housing market due to an imbalance in supply and demand, which has been a boon to builders. Confidence among builders finally pushed into positive territory this month, the first time in 11 months, according to the National Association of Home Builders. Practically all homeowners with a mortgage have a current mortgage rate below 6%, making it less likely for them to sell and buy another home with a higher mortgage rate. The number of previously owned homes on the market did increase in May to 1.08 million units, but that's still below the pre-pandemic norm of 1.9 million homes.