US Homebuilder Confidence Rises Despite Banking Concerns
Despite high mortgage rates and inflation, homebuilders in the US are feeling better about their business as demand for new homes continues to rise. The National Association of Home Builders/Wells Fargo Housing Market Index rose two points to 44 in March, marking the third straight monthly increase in builder sentiment. However, builders remain concerned about the near- and medium-term outlook due to recent instability concerns in the banking system and volatility in interest rates. Additionally, 40% of builders currently characterize lot availability as "poor," which may be further constrained by the banking stress.