U.S. Builder Confidence Falls
U.S. builder confidence in the market for new homes in November dropped 8 points to 60 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). All major HMI components were lower in November. The current sales conditions index decreased 7 points to 67. The component gauging expectations in the next six months was 10 points lower at 65 and the metric charting buyer traffic fell eight points to 45.
Derived from a monthly NAHB survey, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months. Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good rather than poor. See NAHB