Builder confidence in the market for newly built single-family homes in September fell three points to a level of 64 on the National Association of Home Builders/Wells Fargo Housing Market Index.
"The recent hurricanes have intensified our members' concerns about the availability of labor and the cost of building materials," said NAHB Chairman Granger MacDonald in a statement. "Once the rebuilding process is underway, I expect builder confidence will return to the high levels we saw this spring."
The HMI consists of three components: current sales conditions fell four points to 70, sales expectations in the next six months dropped four points to 74, buyer traffic slid down one point to 47.
The three-month moving HMI average increased three points to 77 in the West and one point to 49 in the Northeast. It decreased one point to 66 in the South and three points to 63 in the Midwest.
"Despite this month's drop, builder confidence is still on very firm ground," said NAHB Chief Economist Robert Dietz. "With ongoing job creation, economic growth and rising consumer confidence, we should see the housing market continue to recover at a gradual, steady pace throughout the rest of the year."
