An index of U.S. homebuilder optimism
was unchanged this month, as an accelerating economy and an
improving labor market buoyed housing demand amid rising mortgage
rates, a trade association’s survey showed.
The measure of builder confidence in demand for single-family
houses held at 69 this month, according to the Washington-based
National Association of Home Builders. A reading higher than
50 means builders view market conditions as more positive than
negative. The index has exceeded 60 since June.
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The economy added 625,000 jobs in March and April, the
biggest two-month gain in four years, and demand for consumer and
industrial goods has been rising. Earlier this month, the Federal
Reserve stopped saying it would be “patient” about keeping
borrowing costs low, which may suggest that policy-makers are
will raise interest rates this year to head off inflation.
“With job growth and household income accelerating, this
will provide a stronger foundation for economic activity during
the second half of this year and in 2005,” said David Seiders,
chief economist at the builders association.
Economists had forecast a slight decline in the index to 68,
based on the median of 15 estimates in a Bloomberg News survey.
Projections ranged from 67 to 71.
The association’s index was based on 238 responses in a
survey of builders. In October, the measure reached 72, the
highest since December 1999.
Bloomberg News
