For the fourth consecutive month, builder confidence in the market for newly built single-family homes remained unchanged at 16 in February, according to the NAHB/Wells Fargo Housing Market Index (HMI). HMI results below 50 indicate more builders said building conditions are poor than good. The last time the index was above 50 was in April 2006.
"Builders are telling us that some pockets of optimism have begun to emerge, but many prospective purchasers are concerned about selling their existing home in the current market, or face difficulty securing credit for a home purchase-even when they are well-qualified," said NAHB Chief Economist David Crowe.
The HMI comprises three component indices, and two of them edged slightly upward in February. The component gauging current sales conditions improved by two points to 17, while the component gauging sales expectations in the next six months rose a single point, to 25. Meanwhile, the component gauging traffic of prospective buyers held unchanged at 12.
