Consumer confidence bounced back in February to reach a 15-year high amid signs of renewed positivity over the current and six-month outlook, according to a National Association of Home Builders' analysis of the latest data from the Conference Board.
The Consumer Confidence Index increased to 114.8 in February from 111.6 in January, boosted by slight gains in the present situation and expectations situation indexes, the latter of which looks at the six months ahead.
- The report found that the percentage of U.S. residents who said jobs are "hard to get," dropped to the lowest share in eight years at 20.3% in February, according to MarketWatch.
Consumer confidence is a leading indicator for housing and remodeling demand. With the slight rise in confidence, observers say the measure adds to recent data showing that the housing market remains robust despite recent hikes in mortgage rates.
Along with home sales, the market is also expected to support activity in the remodeling sector as young, first-time buyers purchase existing homes requiring upgrades and older adults remodel their residences for accessibility.
Though recent data show a healthy outlook for the housing industry, builder confidence in the single family segment has subsided slightly amid the increased costs associated with labor and lots shortages, coupled with higher material costs.
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