US homebuilder confidence may have hit bottom in December, NAHB says

Homebuilder confidence in the US may have hit bottom at the end of the previous year thanks to a "modest" decline in interest rates, a leading business lobby group said.

The National Association of Homebuilders' confidence index for single-family home builders ticked higher by four points in January when compared to the month before to reach 35.

Economists had penciled in a reading of 31.0.

"It is possible that the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales," the NAHB said in a statement.

"The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023."

A sub-index linked to current sales conditions in January improved by four points to 40, that for sales expectations two quarters ahead by two points to 37 and that for traffic of prospective buyers by three points to 23.