WASHINGTON \u2014 In a sign that housing continues to lead the economy forward, builder confidence in the market for newly-built single-family homes increased six points to 78 in August, according to the latest\u00a0National Association of Home Builders\/Wells Fargo Housing Market Index\u00a0(HMI). The HMI now stands at its highest reading in the 35-year history of the series, matching the record that was set in December 1998.<\/p>\n\n\n\n
\u201cThe demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI,\u201d said NAHB Chairman Chuck Fowke, a custom home builder from Tampa, Fla. \u201cHowever, the V-shaped recovery for housing has produced a staggering increase for lumber prices, which have more than doubled since mid-April. Such cost increases could dampen momentum in the housing market this fall, despite historically low interest rates.\u201d<\/p>\n\n\n\n
\u201cHousing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,\u201d said NAHB Chief Economist Robert Dietz. \u201cSingle-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets.\u201d<\/p>\n\n\n\n