US Homebuilding Sentiment Steady In April After 4 Months Of Gains

Homebuilding sentiment in the US stayed steady in April after four consecutive months of increases, according to a report released on Monday.

The National Association of Home Builders/Wells Fargo Housing Market Index remained steady at 51 in April, unchanged from March when it hit its highest level since July 2023.

While above 50 is considered positive for the housing sector, the index measures sentiment among homebuilders and is considered an important indicator for housing investment and consumer spending on appliances and furnishings, which affect the overall economy.

"With many frustrated buyers back on the fence waiting for interest rates to fall, policymakers can help ease affordability challenges by reducing inefficient regulatory rules that raise housing costs and limit supply," Carl Harris, chair of the homebuilders' group, said in a statement.

Robert Dietz, the association's chief economist, said: "April's flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed.

"With the markets now adjusting to rates being somewhat higher due to recent inflation readings, we still anticipate the Federal Reserve will announce future rate cuts later this year, and that mortgage rates will moderate in the second half of 2024," he added. -