Homebuilders Thrive in Current Housing Market

Builder confidence in the housing market has reached positive territory for the first time in 11 months, according to the National Association of Home Builders/Wells Fargo housing market index update. The newfound enthusiasm reflects robust foot traffic from homebuyers, little competition from the resale side, and an improved supply chain. Elevated mortgage rates are also helping builders on the supply side by limiting the number of homeowners who are willing to sell in these market conditions. However, project financing remains a headwind, especially after the failure of several regional banks this year roiled markets.