This month, the National Association of Home Builders’ (NAHB) Housing Market Index fell two points, dropping the marker to 63. According to the Association’s analysts, anything above 50 is considered positive homebuilder sentiment—meaning homebuilders currently remain positive about the U.S. housing market.

In fact, according to NAHB Chairman Ed Brady, “even with this month’s drop, builder confidence stands at its second-highest level in 2016, a sign that housing recovery continues to make solid progress.” Although the Index fell two points this month, 2016 has recorded great progress in the housing market. New home sales have averaged an annual pace of 564,000—that’s 13% higher than this time last year!

The Association’s Chief Economist, Robert Dietz, builds on this exciting news, explaining how “the October reading represents a mild pullback from a jump in September, and indicates that the housing market continues to make slow and steady gains.”

As low mortgage rates and a growing job market continue to encourage the nation’s homebuilders, NAHB expects builder confidence to rise another point within the next six months. For more information about the housing market or to keep up-to-date with the latest mortgage news, subscribe to our blog or contact one of our mortgage specialists today.