Builder Confidence Down

Following a strong bump-up in August, builder confidence in the market for new single-family homes edged down this month but remained within the narrow range maintained since this time last year, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The seasonally adjusted monthly gauge of builder sentiment registered a 68 for September, down three points from its month-ago reading.

“This is exactly on par with the index’s year-ago standing, and shows that, in the midst of a particularly devastating hurricane season, builder confidence is essentially unshaken,” said Bobby Rayburn, NAHB president and a home and apartment builder from Jackson, Miss.

The NAHB/Wells Fargo HMI is derived from a monthly survey of builders that NAHB has been conducting for almost 20 years. Scores for responses to each component are used to calculate a seasonally adjusted index, where any number over 50 indicates that more builders view sales conditions as good than poor.