In a strong signal that housing is leading the economic recovery, builder confidence in the market for newly-built single-family homes increased five points to hit an all-time high of 83 in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). The previous highest reading of 78 in the 35-year history of the series was set last month and also matched in December 1998.
"Historic traffic numbers have builders seeing positive market conditions, but many in the industry are worried about rising costs and delays for building materials, especially lumber," said NAHB chairman Chuck Fowke, a custom home builder from Tampa, Fla. "More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months."