Heavy Snow Dampens Builder Confidence

Washington, DC, Feb. 17, 2015 -- Homebuilder confidence fell slightly in February due largely to heavy snow in much of the country, according to the National Association of Home Builders.

Confidence fell two points to a level of 55 on the National Association of Home Builders/Wells Fargo Housing Market Index.

“Overall, builder sentiment remains fairly solid, with this slight downturn largely attributable to the unusually high snow levels across much of the nation,” said NAHB Chairman Tom Woods.

Two of the three HMI components posted losses in February. The component gauging current sales conditions edged one point lower to 61 while the component measuring buyer traffic fell five points to 39. The gauge charting sales expectations in the next six months held steady at 60.

“For the past eight months, confidence levels have held in the mid- to upper 50s range, which is consistent with a modest, ongoing recovery,” said NAHB Chief Economist David Crowe.

“Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead.”