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Home Builder Optimism Rises in Oct-Report
NEW YORK (Reuters) - U.S. home builder optimism grew in October to its strongest level in 2004 on low mortgage rates and heavy traffic of potential buyers, rebounding from a decline in September, an industry report said on Monday. The National Association of Home Builders (NAHB) said its housing index, a measure of builder sentiment about sales and buyer traffic, was at 72 in October from September's downwardly revised figure of 67. An index reading above 50 indicates more builders consider sales conditions good rather than poor. The latest reading of the National Association of Home Builders/Wells Fargo Housing Market Index, considered a barometer for future housing activity, equaled to the level set in the same year-earlier month. Home developers appeared confident that the U.S. housing market will set another record year in new home sales in 2004. "Most builders are looking forward to a healthy marketplace moving into 2005," David Seiders, the group's chief economist, said in a statement. Historically low borrowing cost has remained the key factor driving robust home sales, according to Seiders and other analysts. Average interest rates on 30-year fixed-rated mortgages have been running below 6 percent, and on one-year adjustable-rate rates have been running near 4 percent since early August, according to Freddie Mac. The housing market index has three sub-indexes. The NAHB's current sales activity index rose to 78 in October from September's 73. Meanwhile, its index gauging sales expectations for the next six months jumped to 84 from 75 a month earlier and the index gauging traffic of prospective buyers increased to 54 points from September's 52. "Another factor that's undeniably contributing to builder optimism is the large turnout of prospective buyers at model homes and sales offices," Seiders said. Source: reuters.comFor more information about adjustable rate mortgage: Information about insurance
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