To some, this may hardly feel like an economy headed for a bright future. But don’t tell that to home builders.
Builder confidence in August jumped to an eye-popping 78 in August, according to the Housing Market Index courtesy of the National Association of Home Builders. To put that number in perspective, anything over 50 is considered positive.1
This past April, builder confidence plunged to 30 as the pandemic swept the nation. In August, the index hit the highest level in the 35-year history of the monthly series and matches the record set in December 1998.1
Due to the ongoing pandemic, many people transitioned to working from home at the beginning of the year. As 2020 wore on, and schools made plans to offer remote learning, many homes began to do triple duty as a space to live, work, and learn. With this in mind, the top requirements for buyers are hardly surprising: a home office, a garage, and greener backyards. In addition, record-low mortgage rates have made urban flight a reality for many.1,2
Remember, housing’s contribution to the Gross Domestic Product (GDP) can average as high as 18 percent, making it a critical barometer to monitor.3
We understand that a home is often the biggest financial commitment many can make. That’s why when it comes to your most important financial decisions—like buying your first home— we’d love to help.
1. CNBC.com, August 25, 2020
2. MarketWatch.com, August 25, 2020
3. NAHB.com, 2020
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