U.S. homebuilder confidence matches record high

NAHB’s measures of both current and future home sales improved.

“Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB Chief Economist Robert Dietz. “Single-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets.”

The U.S. Census Bureau will report July’s housing starts data on Tuesday, and economists polled by Reuters are looking for an increase to 1.24 million units on an annualized basis from 1.186 million in June.

Housing starts plunged this spring during widespread lockdown orders issued to try to contain the virus, but have rebounded sharply from a six-year low hit in April. The economy fell into recession in February as a result of the COVID-19 pandemic.