Builder-confidence index rises to five-month high on expectations that mortgage rates will drop in the coming months

The numbers: Home-builder confidence rose in February, with the industry expecting the Federal Reserve to cut interest rates later this year, which could boost demand for homes.

Expectations about a potential rate cut and a drop in mortgage rates in the coming months pushed the National Association of Home Builders’ monthly confidence index up 4 points to 48 in February, the trade group said on Thursday.

The…