Confidence Among U.S. Homebuilders Declines to Three-Month Low
By Michelle Jamrisko Oct 16, 2014 10:00 AM ET
Confidence among U.S. homebuilders dropped in October to a three-month low, interrupting momentum as the industry approaches the quieter winter months.
The National Association of Home Builders/Wells Fargo builder sentiment gauge declined to 54 this month from 59 in September, figures from the Washington-based group showed today. Readings greater than 50 mean more respondents report good market conditions. The median forecast in a Bloomberg survey called for no change.
“We are seeing a return to the mid-50s index level trend established earlier in the summer, which is in line with the gradual pace of the housing recovery,” NAHB Chairman Kevin Kelly, a homebuilder and developer from Wilmington, Delaware, said in a statement. “While there was a dip this month, builders are still positive about the housing market.”
Cheaper borrowing costs may help draw more prospective buyers into the market even as credit conditions remain tight more than five years after the recession. Further job market gains and a pickup in wages would help boost residential real estate, which has seen lackluster participation among first-time home buyers.
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http://www.bloomberg.com/news/2014-10-16/confidence-among-u-s-homebuilders-declines-to-three-month-low.html
