Homebuilder Confidence in U.S. Held in January at Six-Year High

Source: Bloomberg

By Michelle Jamrisko - Jan 16, 2013

Confidence among U.S. homebuilders held in January at the highest level in more than six years, offering the latest evidence that residential real estate will help spur economic growth.

The National Association of Home Builders/Wells Fargo index of builder confidence was 47, matching December’s reading as the highest since April 2006, the Washington-based group reported today. The median forecast of 50 economists projected a reading of 48.

Stronger sales and affordable borrowing costs are driving traffic for lenders such as Wells Fargo & Co. (WFC) Climbing property values and household formation may continue to underpin progress in returning residential real estate to pre-recession levels.

“Fundamentals indicate continued momentum in housing this year,” NAHB Chief Economist David Crowe said in a statement. “However, persistently tight mortgage credit conditions, difficulties in obtaining accurate appraisals and the ongoing stalemate in Washington over critical economic concerns continue to impede the housing recovery.”

Read more: http://www.bloomberg.com/news/2013-01-16/homebuilder-confidence-in-u-s-held-in-january-at-six-year-high.html