Builder confidence in the market for newly constructed single-family homes decreased two points to 63 in October, according to the National Association of Home Builders Housing Market Index.
Builder confidence in the market for newly constructed single-family homes decreased two points to 63 in October, according to the National Association of Home Builders Housing Market Index.
Despite the drop, the HMI is at its second-highest level in 2016, said NAHB Chairman Ed Brady in a statement.
Two of the three HMI components reported losses in October: current sales conditions fell two points to 69 and buyer traffic decreased by one to 46. The component measuring sales expectations in the next six months increased one point to 72.
The HMI rose two points to 75 in the West, while the Northeast, Midwest and South reported one-point gains to 43, 56 and 65, respectively.
NAHB Chief Economist Robert Dietz described the overall monthly decline as “a mild pullback,” in a statement.
“Moreover, mortgage rates remain low and the HMI index measuring future sales expectations has been over 70 for the past two months,” he said. “These factors will sustain continued growth in the single-family market in the months ahead."