Builder confidence in single-family homes remained unchanged for March. According to the National Association of Home Builders, the NAHB/Wells Fargo housing market index remained at 20, close to its historic low of 18 set in December 2007.
The HMI is derived from a monthly survey to gauge builders’ perceptions of the single-family housing market in the coming six months as good, fair or poor. It also asks builders to rate traffic of prospective buyers as either high to very high, average or low to very low. A score over 50 indicates that more builders view sales conditions as good than poor.
“Our surveys confirm what I’ve been hearing personally from builders across the country, which is that interested buyers are out there, but they are either reluctant to go ahead with a home purchase or they are unable to find mortgage financing they can afford,” said NAHB president Sandy Dunn, a home builder from Point Pleasant, W.Va.
Regionally, the Northeast posted a two-point decline to 21, the Midwest held even at 16, the South reported a two-point gain to 26 and the West showed a one-point decline to 15.