Here Comes Homebuilder Confidence...

A worker lays shingles as construction continues on a residential home in Carlsbad, California

Photo: REUTERS/Mike Blake

The NAHB housing market index for March is out at 10 a.m. ET.Economists polled by Bloomberg are looking for homebuilder confidence to rise to 47, from 46 in February.

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Homebuilder confidence is considered a good leading indicator of the housing market.

We’ve been reporting on the tight housing supply. And economists have in large part raised their home price forecasts because of a decline in housing inventory.

Moreover, Bank of America’s Michelle Meyer thinks “a positive feedback loop has begun”. When people think home prices are rising, they think they will keep doing so and credit conditions will improve, and this in turn increases demand for homes.

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