Builder confidence slips
The National Association of Home Builders announced that "Builder confidence in the market for new single-family homes edged downward this month but remained well above where it was this time last year when mortgage interest rates were at their lowest point in nearly half a century."
The National Association of Home Builders’ measure the Housing Market Index (HMI). The HMI is "... derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Home builders are asked to rate current sales of single-family homes as “good,” “fair” or “poor.” They are also asked to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for responses to each component are used to calculate a seasonally adjusted index, where any number over 50 indicates that more builders view sales conditions as good than poor."
The HMI went down 2 points in June to 67. This is 5 points ahead of where it was in June of 2003.
To read the entire press release, go here.