Does your boss have you on an electronic leash? I'm David Brancaccio.

First, we'll get word on the number of new homes and apartment complexes started

by developers in September later this morning and there's already

evidence that the people doing the construction are feeling a bit more

upbeat according to an index out this week from the National Association of

Home Builders. Builder confidence is the highest in four months.

Marketplace's Stephanie Hughes looked into this.

The phone has been ringing at Moon Tower Design and Build, a custom home builder in Austin, Texas.

Architect and sales director Maggie McIntosh says she's hearing from potential customers

anticipating a drop in mortgage rates.

I think people are saying like, okay, I maybe couldn't stomach 7%, you know, 6% is uncomfortable, but 5% looks pretty good.

She says they're also willing to spend more money because money is cheaper since the Federal Reserve

started cutting the Federal funds rate.

That rate dropping also means builders will pay less interest on their loans.

Robert Deets, Chief Economist at the National Association of Home Builders,

says building a house often means buying land, sometimes connecting it with sewer, building sidewalks, and paying for building materials like lumber and steel, along with the workers to put it all up.

Typically all of that has to be financed up front

before the home is purchased.

Dietz says he expects that increase confidence among builders

to translate into real new inventory on the market in five to six months.

I'm Stephanie Hughes for Marketplace.

It's also true that mortgage rates in fact have been rising since the fed lowered rates go figure.

...