National homebuilder confidence ticks up

​​​​​​​WASHINGTON – Nationally, builder confidence in the single-family housing market rose one point to 68 in October on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Builder confidence levels have held in the high 60s since June. 

"Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment," said NAHB Chairman Randy Noel. "Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they need to manage supply-side costs to keep home prices affordable."

According to NAHB Chief Economist Robert Dietz, while favorable economic conditions should continue to support demand, housing affordability is a challenge due to ongoing price and interest rate increases. 

"Unless housing affordability stabilizes, the market risks losing additional momentum as we head into 2019," said Dietz. 

The HMI measuring current sales conditions rose one point to 74. The index gauging expectations in the next six months also rose one point to 75. The metric charting buyer traffic registered a four-point uptick to 53.

Regionally, the South’s HMI rose one point to 71. ​