Builder Confidence Declines in October

Washington, DC, Oct. 16, 2014 -- After four consecutive monthly gains, home builder confidence fell five points this month to a level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index.

“While there was a dip this month, builders are still positive about the housing market,” said NAHB Chief Economist David Crowe.

“After the HMI posted a nine-year high in September, it’s not surprising to see the number drop in October. However, historically low mortgage interest rates, steady job gains, and significant pent up demand all point to continued growth of the housing market.”

All three index components declined in October. Current sales conditions decreased six points to 57, while future sales slipped three points to 64 and the traffic of prospective buyers dropped six points to 41.