In April, data released indicated that US homebuilder confidence remained unchanged, staying at its highest level since last July. This marked a halt to four consecutive months of gains. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index was reported to be at 51 this month. Measures of current sales and prospective buyer traffic both increased to their highest levels since August, while the survey's measure of sales in the next six months declined.
NAHB Chief Economist Robert Dietz commented that the flat reading in April suggests potential for demand growth, but buyers are hesitant due to uncertainty about interest rates. He stated that buyers are waiting to see where interest rates are headed before making decisions. Dietz also mentioned the recent adjustment of markets to higher rates because of inflation readings. Despite this, he anticipates that the Federal Reserve will announce future rate cuts later this year and expects mortgage rates to moderate in the second half of 2024.
