According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), home builder confidence has climbed to a reading of 71—that’s the highest level of confidence in 12 years! Any reading above 50 is known as positive home builder sentiment, and with this month’s reading jumping 13 points since last March and six points since April, potential homebuyers can only hope the housing market will remain “good” throughout the upcoming months.

The month’s spark in confidence stemmed from Trump’s latest regulatory rollback of signing an executive order to review Obama’s 2015 Waters of the United States rule. More specifically, according to Granger MacDonald, chairman of the National Association of Home Builders, “builders are buoyed by President Trump’s actions on regulatory reform, particularly his recent executive order to rescind or revise the waters of the U.S. rule that impacts permitting.”

Throughout the country, builders have noted this rule to be particularly “burdensome” for their industry. In fact, CNBC highlights that 25 percent of a home’s cost is due to strict regulations like the Waters of the United States rule. With this recent rollback, home builders look forward to a boost in their industry, as overall construction costs may begin to fall.

In addition to rising home builder confidence, the Index’s sales conditions grew five points to a reading of 78, while current sales conditions jumped seven points, also to a reading of 78. The current measurement of homebuyer traffic also rose, now reaching a level of 54.

To keep up-to-date with the nation’s mortgage news, or to learn more about housing market forecasts, contact one of our mortgage specialists today.