Home builder sentiment rises above breakeven point

A lack of existing inventory that continues to drive buyers to new home construction, coupled with strong demand and mortgage rates below last fall’s cycle peak helped push builder sentiment above a key marker in March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Builder confidence in the market for newly built single-family homes climbed three points to 51 in March, according to the index. This is the highest level since July 2023 and marks the fourth consecutive monthly gain for the index. It is also the first time that the sentiment level has surpassed the breakeven point of 50 since last July.

“Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year,” said Carl Harris, NAHB chairman. “But even though there is strong pent-up demand, builders continue to face several supply-side challenges, including a