Confidence increased in three of the four regions of the country in November, with the biggest gain coming in the Midwest. In the West, however, a region where distressed properties still account for over half of the homes listed for sale, sentiment dipped by a substantial amount. Of the various categories measured by the survey, builders' views of current sales conditions rose the most, with smaller gains seen in future expectations and buyer traffic.
Many builders cite near record-low interest rates and home values for generating more buyers in the housing market, but the NAHB has lobbied heavily over the last few weeks to get legislators to reinstate loan limits for mortgages backed by government-run Fannie Mae, Freddie Mac and the FHFA. The agencies had been allowed to back loans of up to $729,750 prior to October 1st, when the limit was reduced to $625,500. This week a bill was passed raising the limit for FHFA loans, but Fannie and Freddie loans remain under the same constraint.
A number of investment analysts have upgraded the stocks of US builders recently, as they believe a turnaround in the sector will begin next year. US housing starts increased substantially in October, although the increase was largely driven by rising demand for rental properties, increasing starts in the volatile multi-family sector. October housing starts, expected to be flat from September, are scheduled to be released Thursday by the Commerce Department.
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