Builder confidence holds steady in November
Confidence among builders of single-family homes was unchanged in November, according to survey results released by the NAHB and Wells Fargo.
The Housing Market Index number for the month was 58 on a 1000-point scale. A figure above 50 indicates a majority of builders view conditions as positive. The index has been above 50 for six months.
"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 National Association of Home Builders Chairman Rick Judson. "Meanwhile, builders continue to face challenges related to rising construction costs and low appraisals."
David Crowe, the association’s chief economist, said the index should be even higher.
"Policy and economic uncertainty is undermining consumer confidence," Crowe said. "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."
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