From CNBC:

Homebuilder sentiment improved in January, jumping 7 points to 44 on the National Association of Home Builders monthly index. The increase coincides with a big drop in mortgage interest rates from around 8% in mid-October to the 6% range in December. Lower interest rates improved housing affordability conditions, bringing some buyers back into the market. Single-family starts are expected to grow in 2024, adding much needed inventory to the market.

Builders point to mortgage interest rates and the effect on affordability for growing confidence. Of the index’s three components, current sales conditions increased 7 points to 48, sales expectations in the next six months jumped 12 points to 57 and buyer traffic rose 5 points to 29. Sentiment was flat in the Midwest and rose slightly in the South and West. Regionally, builder confidence increased the most in the Northeast, the only area now in positive territory at 55.



Read more: January homebuilder sentiment improves, following mortgage rate drop