Builder confidence ticked up a point to 68 in October on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), remaining in the high 60s, where it has hovered since June.
NAHB Chief Economist Robert Dietz wrote in his commentary, "Builders continue to view solid housing demand, fueled by a growing economy and a nearly 50-year low for unemployment. Lumber price declines for three straight months from elevated levels earlier this summer have also helped to reduce some cost pressures, but builders will need to manage supply-side costs to keep home prices affordable.

"Favorable economic conditions and demographic tailwinds should continue to support demand, but housing affordability has become a challenge due to ongoing price and interest rate increases. Unless housing affordability stabilizes, the market risks losing additional momentum as we head into 2019."
The HMI index measuring current sales conditions rose one point to 74. The component gauging expectations in the next six months increased a single point to 75. The metric charting buyer traffic registered a four-point uptick to 53.
Looking at the three-month moving averages for regional HMI scores, the Northeast rose three points to 57 and the South edged up one point to 71. The West held steady at 74 and the Midwest fell two points to 57.