The National Association of Home Builders (NAHB) announced their monthly survey today, showing that U.S. home builders reported their confidence in the single family home market dropped three points to 58 in February, from an upwardly revised January reading of 61.
The NAHB/Wells Fargo Housing Market Index (HMI) is based on builder sales projection over the next six months.
NAHB Chairman, Ed Brady, a home builder and developer from Bloomington, Ill, had said this about the survey: “Though builders report the dip in confidence this month is partly attributable to the high cost and lack of availability of lots and labor, they are still positive about the housing market. Of note, they expressed optimism that sales will pick up in the coming months.”
NAHB Chief Economist, David Crowe said, “Builders are reflecting consumers’ concerns about recent negative economic trends. However, the fundamentals are in place for continued growth of the housing market. Historically low mortgage rates, steady job gains, improved household formations and significant pent up demand all point to a gradual upward trend for housing in the year ahead.”