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More Americans are showing interest in buying homes, boosting builder confidence. The National Association of Home Builders/Wells Fargo builder sentiment index jumped to 35 this month, its highest level in five years. Builders said they are seeing more traffic from prospective customers. Still, the index remains below 50, the level that indicates builder sentiment is in positive territory. It hasn't reached that level since April 2006, the height of the housing bubble. There are also fewer homes for sale, which is spurring more home building and raising the prices of those that are on the market. The housing market is also being supported by record-low mortgage rates. The average rate on the 30-year fixed mortgage fell this week to 3.53 percent, the lowest since long-term mortgages began in the 1950s. But even with the low rates, many would-be buyers are having difficulty qualifying for home loans or can't afford the larger down payments being required by banks. And the job market has weakened considerably in recent months, threatening the recovery in housing. Employers added just 80,000 jobs in June. Job gains averaged only 75,000 in the April-June quarter, after averaging 226,000 in the first three months of the year. The unemployment rate is stuck at 8.2 percent. Without more job growth, consumers may feel less secure about their financial futures and delay purchasing a new home.
[Associated
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