Quick review of home builder sentiment

The April NAHB home builder index held at 51 as expected and the 2^nd month in a row above 50 for the first time since last summer. However, the pool of buyers as measured by Prospective Buyers Traffic remained well below 50 at 35 vs 34 in March. This as the average 30 yr mortgage itself averaged 7.2% in March and currently stands at 7.36% as of Friday according to Bankrate, around a 4 month high.

The NAHB said “April’s flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed.” And the NAHB is calling on policymakers to reduce “inefficient regulatory rules that raise housing costs and limit supply.”