Homebuilders appear to be happy with the latest property data regarding the new-home market, as builder confidence bumped up in October.
The indicator improved slightly this month, as the association's latest edition of the Housing Market Index rose to 41, according to the National Association of Home Builders. This was the highest level in six years. However, sales conditions did not change from September's figure of 42, while the sales outlook for the next six months also remained steady at 51. Additionally, the traffic of prospective buyers jumped to 35, which was an increase of five points from September's figure, as well as the highest point in six years.
"Many builders are reporting increases in the number of serious buyers visiting their sales offices, and the overall confidence measure is much higher than it was at this time last year," said Barry Rutenberg, chairman of the NAHB.
Mortgage records showed continued low rates in recent weeks. According to Freddie Mac's Primary Mortgage Market Survey for the week ending October 11, the 30-year fixed-rate mortgage average was 3.39 percent, only marginally higher than the all-time record low level of 3.36 percent.