The NAHB housing market index jumped to 29 in February, up from 25 in January.This is the fifth consecutive month of gains. The index is now at its highest levels since 2007.
Economists were expecting 26.
“This is the longest period of sustained improvement we have seen in the HMI since 2007, which is encouraging,” said NAHB Chief Economist David Crowe. “However, it is important to remember that the HMI is still very low, and several factors continue to constrain the market. Foreclosures are still competing with new home sales, and many builders are seeing appraisals come in at less than the cost of construction. Additionally, prospective home buyers are finding it difficult to qualify for a mortgage.”