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Builder sentiment rises in August but stays below 40 for 16 months
The NAHB/Wells Fargo Housing Market index increased to 35, while construction costs remain pressured by higher gas and diesel prices tied to the Iran war.
U.S. home builder sentiment rose unexpectedly in August, but residential construction firms remain broadly cautious amid economic uncertainty, high mortgage rates, and steep building costs, according to a Reuters survey reported by Yahoo Finance.
The National Association of Home Builders and Wells Fargo Housing Market index climbed one point to 35 from July’s 34, while economists polled by Reuters had forecast a decline to 33 for a third straight month.
The single-family current sales subindex moved up to 39, the highest since May, from 37 in July, and measures of future sales and prospective buyer foot traffic were unchanged.
Rising energy costs remain a drag, with gasoline averaging above $4 a gallon and diesel averaging $5.45 a gallon, Reuters noted, tied to disruptions to global energy markets from the U.S.-led war with Iran, and the report said the contract rate on a 30-year fixed mortgage was 6.77% as of the week ended August 7.
Latest closeGasoline (RBOB) $2.901 ▼7.3%