Home Builder Confidence "Extremely Upbeat"

Extremely upbeat is the continuing description of home-builder confidence, at an as-expected 72 in February. Traffic remains the highlight, steady at 54 which is very strong for this reading and which suggests that first-time buyers are coming into the market. Assessments of current and future sales remain unusually strong, at 79 and 78 respectively. Regional strength is led by the West followed closely by both the South and Midwest. And though the Northeast lags, it's showing increasing strength. Capacity is the welcome challenge for builders and the new home market as the supply of homes continues to lag demand.

Recent History Of This Indicator:
Visible improvement in customer traffic has been giving a boost to the housing market index which is near expansion highs. Sales readings in this report, both current and expectations, have been very strong and accelerating and have correctly signaled the upturn underway for new home sales. Econoday's February consensus calls for steady strength, unchanged at 72.