Key takeaways
- Homebuilder sentiment is on the rise for the first time in over a year as mortgage interest rates noticeably dropped in early 2023. Mortgage interest rates are somewhat tied to 10-year Treasury yields, which have fallen with decreasing inflation rates.
- Just because sentiment is up nationally doesn’t mean it’s equal across all markets. It’s important for real estate investors to take note of regional trends.
- Hopefully this optimism will continue, but if global events impact financial markets in 2023, we could see a reversal, especially if inflation skews off its current course.
After 12 straight months of decline, homebuilder sentiment finally ticked back up again in January 2023 for the first time in a year.
The National Association of Homebuilders (NAHB) revealed last week that its national Housing Market Index (HMI) bumped up from December’s low of 31 to a more-encouraging 35.
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