Confidence Among Homebuilders in U.S. Falls From 11-Month Highby
Confidence among U.S. homebuilders cooled in October from an 11-month high, reflecting a pause in the market for single-family houses, according to data from the National Association of Home Builders/Wells Fargo.
- Builder sentiment gauge dropped to 63 (matching forecast) from the prior month’s 65 that was the highest since October 2015; readings greater than 50 mean more respondents reported good market conditions
- Index of prospective buyer traffic fell to 46 from 47
- Measure of six-month sales outlook rose to 72, the highest in a year, from 71
- Gauge of current sales decreased to 69 from an almost 11-year high of 71
Developers’ sentiment may have been restrained by factors including the limited availability of ready-for-building lots and skilled workers. At the same time, mortgage rates still close to historically low levels and a healthy job market will help keep the housing rebound on track.
The report “represents a mild pullback from a jump in September,” NAHB Chief Economist Robert Dietz said in a statement. “The housing market continues to make slow and steady gains.”
- Builder confidence climbed in two of four regions
- It decreased eight points in the West to 74, slipped four points in the South to 64
- Sentiment rose four points in the Northeast to 46, two points in the Midwest to 59