Washington, DC, Nov. 18, 2013 -- Builder confidence in the single-family housing market was unchanged in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
For the sixth consecutive month, more builders have viewed market conditions as good than poor. However, the reading was the lowest level since June.
“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.”
Chief Economist David Crowe said, “Policy and economic uncertainty is undermining consumer confidence. The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline.”
The HMI index gauging current sales conditions in November held steady at 58. The component measuring expectations for future sales fell one point to 60 and the component gauging traffic of prospective buyers dropped one point to 42.