ML-Implode News - Home builder confidence soared to highest level in 12 years as Trump rolls back regulations

Builder sentiment had moved higher just after the election, but then receded at the start of the year amid rising mortgage rates and a continued labor shortage. Trump signed an executive order at the end of February designed to roll back a 2015 rule from the Obama administration known as the Waters of the United States. Home builders have called the rule "burdensome" and claim that 25 percent of the cost of a home today is due to regulation, including this one.
Builders are not only pleased with Trump's first move on water, they also expect further deregulation to bring down construction costs. There are, however, other roadblocks keeping the nation's builders from producing more homes, which are sorely needed in today's tight housing market.

"While builders are clearly confident, we expect some moderation in the index moving forward," said NAHB Chief Economist Robert Dietz. "Builders continue to face a number of challenges, including rising material prices, higher mortgage rates, and shortages of lots and labor."

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Home builder confidence soared to highest level in 12 years as Trump rolls back regulations