Builder confidence slid three points in November to a reading of 62, according to the NAHB/Wells Fargo Housing Market Index (HMI) released this morning. In October, the HMI jumped four points to a score of 65--an 11 point increase from October 2014, when the builder confidence reading was 54.
November's reading breaks a sixth month streak of builder confidence on a level or positive trajectory without slippage.
In October, the sales expectations portion of the index rose seven points to a score of 75, and the current sales conditions portion of the index rose three points to a score of 70, while buyer traffic held steady at a score of 47. This month, only one component of the HMI rose--both current sales conditions and sales expectations slid in November, to a reading of 60 and 70 respectively. Buyer traffic did increase, but only by one point on the scale.
November's slide shouldn't be discouraging for builders however. According to NAHB Chief Economist David Crowe, "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.”
November HMI component scores:
Sales expectations in the next six months: 70
Current sales conditions: 67
Buyer traffic in new homes: 48
Read NAHB's full take on the November reading >>
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