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Fears of housing downturn may have been overblown

Fears of housing downturn may have been overblown

New York (CNN Business)The housing market is flashing signs of a bounce back in 2019.

CNNBusiness

But the National Association of Home Builders (NAHB) said Wednesday that builder confidence spiked last month thanks to a drop in interest rates.

Low mortgage rates should fuel more demand to buy houses
“Consumer mortgage demand and homebuilder construction sentiment are on the mend, which indicates that lower interest rates are beginning to have a positive impact,” said Freddie Mac chief economist Sam Khater in a release.

Builders expect a comeback
KB Home (KBH) CEO Jeffrey Mezger noted that there was strong demand in some markets that took the biggest hits in the last housing downturn, such as Las Vegas, Phoenix and the Southeast. He added that a low supply of existing homes should help keep prices stable as well.

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Fears of housing downturn may have been overblown