NAHB Sentiment jumped (again) to 62 (from 61) - its highest since 2005. The last time homebuilders were this exuberant, home sales collapsed.. reminding us of Upton Sinclair's classic line, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” Well they nailed it in 2005!! Just ignore this... In this case, with mortgage applications indicating anything but a healthy housing market, "It is difficult to get a homebuilder to admit all is not well when his entire career depends on his ignorance of reality." Charts: Bloomberg
Levels of positive sentiment in the US's National Association of Home Builders (NAHB) has increased to 62%, despite significantly lower levels of mortgage approvals and home sales. Zero Hedge notes that rather than builder sentiment echoing a healthy housing market, is it more likely to be unfounded confidence. Previously, equally strong levels of market confidence were reported in 2005, when transactions and mortgage approval rates were also high.