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Builder Confidence slipped three points in November to 62
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Builder confidence in the market for newly constructed single-family homes slipped three points to 62 in November from an upwardly revised October reading on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Even with this month’s drop, builder confidence has remained in the 60s for six straight months — a sign that the single-family housing market is making long-term headway. However, our members continue to voice concerns about the availability of lots and labor.
The November report is pullback from an unusually high October, and is more in line with the consistent, modest growth that we have seen throughout the year. A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016.
Two of the three HMI components posted losses in November. The index measuring sales expectations in the next six months fell five points to 70, and the component gauging current sales conditions decreased three points to 67. Meanwhile, the index charting buyer traffic rose one point to 48.
Looking at the three-month moving averages for regional HMI scores, the West increased four points to 73 while the Northeast rose three points to 50. Meanwhile the Midwest and South held steady at 60 and 65, respectively.
Posted: November 17, 2015 Tuesday 10:00 AM