An economic report showed that the confidence of housing construction companies in the United States improved during the current month, after declining for 4 months in a row.
The report, released by the National Federation of Home Builders in the United States, monitors the confidence of housing construction companies in the market.
The report said that the “National Federation of Home Builders/Wells Fargo” index of the housing market rose during the current month to 37 points compared to 34 points last October and was the lowest level in 11 months. Analysts had expected the index to rise this month to 36 points.
“With mortgage interest rates falling by 50 basis points over the past month, construction companies are starting to record an increase in purchase traffic as some potential buyers, who previously saw prices higher than their ability, return to looking for a home again,”said Alicia Hui, Chairman of the board of Directors of the National Federation of Home Builders.
“In light of the significant shortage of housing supply, increasing housing construction is the best way to alleviate the crisis of rising prices, increase supply and reduce the inflation rate,”she added.
The rise in the main indicator of corporate confidence came at a time when the sub-index of sales expectations rose to 45 points in December against 39 points last month. The index measuring the movement of potential buyers rose to 24 points against 21 points over the same period, while the indicator for monitoring current sales stabilized at the level of 40 points.
The index of sales expectations for the next six months recorded a significant increase during the current month, reaching 57 points against 50 points last April. The indicator measuring the current sales situation also rose to 56 points during the current month against 51 points last month, while the indicator of potential purchase movement increased to 33 points against 31 points last month.
