Home builder confidence hits four-month low in November

The National Association of Home Builders/Wells Fargo Housing Market Index remained static at 54 for November, compared with a downwardly revised October reading of the same level.

“Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road,” said NAHB chairman Rick Judson. “Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals.”

Meanwhile, the HMI Index regarding current sales conditions was slightly higher (though also static) at 58. Future sales expectations fell one point to 60, and the index for prospective buyer traffic was also down one point to 42.

Regionally, confidence in the Northeast was up one point, down three points in the Midwest, and unchanged in the South and West.

The Housing Market Index is a gauge of builder perceptions regarding single-family home sales, as well as expectations therein for the next six months. Readings above 50 on the scale indicate that a majority of respondents view market conditions as favorable.

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