Homebuilder Confidence Declines
Citing "Rising mortgage rates, continued affordability issues and subsiding demand from investors/speculators", the National Association of Home Builders (NAHB) released information today that indicates a decline in builder confidence for new single family homes.
This confidence is measured in their National Association of Home Builders/Wells Fargo Housing Market Index (HMI) that "gauges builder perceptions of current single-"family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as either "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor."
"Regionally, only builders in the West registered greater confidence in market conditions in April than in the previous month; there, a four-point gain to 70 partially offset a significant decline in March. Meanwhile, the HMI for the Northeast posted a seven-point decline to 49, the HMI for the South recorded a four-point decline to 55, and the HMI for the Midwest showed continued weakness in that region with a five-point decline to 32."
To read more: NAHB home builder confidence