Builder Confidence Rises in November

Washington, DC, Nov. 16, 2011 -- Homebuilder confidence rose by three points to 20 on the National Association of Home Builders/Wells Fargo Housing Market Index for November.

The gain builds on a revised three-point increase in October, and brings the confidence gauge to its highest level since May of 2010.

However, the overall measure remains low due to the many challenges that home building continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers, said Bob Nielsen, NAHB chairman.

“This second consecutive gain in the HMI is evidence that well-qualified buyers in select areas are being tempted back into the market by today’s extremely favorable mortgage rates and prices,” said NAHB Chief Economist David Crowe.

“We are anticipating further, gradual gains in the builder confidence gauge heading into 2012 due to these pockets of improving conditions that are slowly spreading.”