US: Homebuilder confidence rises on lower mortgage rates - Wells Fargo
The NAHB/Wells Fargo Housing Market Index climbed two points in January, “as a significant decline in mortgage rates helped to reverse the prior two months’ 12-point plunge”, explained analysts at Wells Fargo.
“Builder confidence slightly exceeded expectations, rising two points to 58. The housing market has received a much needed reprieve from higher mortgage rates, which peaked near 5% in mid-November but have since fallen to below 4.5%.
“The ongoing government shutdown will most likely prevent the release of new housing starts and permits data for December, originally scheduled for release tomorrow. Still, forward looking indicators suggest a modest improvement for housing, which we expect to continue through 2019.”