Builder Confidence Fell Eight Points in Nov. but Remained Positive
Washington, DC, November 19, 2018-Growing affordability concerns resulted in builder confidence in the market for newly-built single-family homes falling eight points to 60 in November on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Despite the sharp drop, builder sentiment still remains in positive territory.
“Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices,” said NAHB chairman Randy Noel, a custom home builder from LaPlace, Louisiana.
All of the major HMI indices posted declines. The index measuring current sales conditions fell seven points to 67, the component gauging expectations in the next six months dropped 10 points to 65 and the metric charting buyer traffic registered an eight-point drop to 45.