Skip to main content

Builder Confidence Levels Off in November

Nov 18, 2013

Builder confidence in the market for newly built, single-family homes was unchanged in November from a downwardly revised level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This means that for the sixth consecutive month, more builders have viewed market conditions as good than poor. "Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road," said NAHB Chairman Rick Judson. "Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals." "Policy and economic uncertainty is undermining consumer confidence," said NAHB Chief Economist David Crowe. "The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline." Derived from a monthly survey that NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index 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 "high to very high," "average" or "low to very low." Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions in November held steady at 58. The component measuring expectations for future sales fell one point to 60 and the component gauging traffic of prospective buyers dropped one point to 42. The HMI three-month moving average was mixed in the four regions. No movement was recorded in the South or West, which held unchanged at 56 and 60, respectively. The Northeast recorded a one-point gain to 39 and the Midwest fell three points to 60.
About the author
Published
Nov 18, 2013
First FICO 10T-Backed MBS Issuance Achieved

Comprised of VA loans, the pool offers proof of concept for changes to be required by the FHFA by late 2025.

Dec 03, 2024
BAC Co-Founder Reveals Mega Brokers May Undergo CFPB Audits

Brendan McKay of BAC revealed the main takeaways in a LinkedIn post

Dec 02, 2024
AnnieMac Data Breach Impacts 171,000 Customers

Letters detailing the Aug. 23 breach were mailed to thousands of affected customers across multiple states last week.

Nov 18, 2024
More Communication, Earlier, Homebuyers Plead

It takes more than just 'fast and fancy' to please mortgage borrowers, according to the latest J.D. Power study

Nov 12, 2024
NAR's Yun Predicts 6-8 Rate Cuts Over Next Two Years

The NAR Chief Economist offers a blended forecast for 2025 and 2026

Nov 11, 2024
Joint Ventures Amp Up, loanDepot Partners With Smith Douglas Homes

The joint venture, Ridgeland Mortgage, combines new home construction with a mortgage lending platform

Nov 11, 2024