Home builders apparently pushed aside current concerns about supply chain
disruptions to display increased confidence in the new home market in October.
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market
Index (HMI) which gauges that confidence rose 4 points this month to 80. However, NAHB economist Robert Dietz says that, despite the increase, “builders
are getting increasingly concerned about affordability hurdles ahead for most
buyers. Building material price increases and bottlenecks persist and interest
rates are expected to rise in coming months as the Fed begins to taper its
purchase of U.S. Treasuries and mortgage-backed debt.” He urged policymakers to
focus on fixing supply chain issues to spur more residential construction and
help ease upward pressure on home prices.