Steel Markets

NAHB Reports Drop in Builder Confidence

Written by Sandy Williams


Builder confidence fell five points to 54 in the October National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The decline follows four consecutive months of gains and a nine year high in September.

The index for current sales conditions slipped six points to 57 while expectations for future sales inched down three points to 64. The index gauging traffic of prospective buyers fell six points to 41.

“We are seeing a return to the mid-50s index level trend established earlier in the summer, which is in line with the gradual pace of the housing recovery,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.

“While there was a dip this month, builders are still positive about the housing market.” “After the HMI posted a nine-year high in September, it’s not surprising to see the number drop in October,” said NAHB Chief Economist David Crowe. “However, historically low mortgage interest rates, steady job gains, and significant pent up demand all point to continued growth of the housing market.”

Regionally, the three month moving averages remained flat for the Northeast and Midwest, at 41 and 59, respectively. The West lost one point dipping to 57. The South was the only region to register a gain, moving up two points to 58.

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