The National Association of Home Builders’ Housing Market Index measures builder confidence in the market for newly built homes. The index scores home builders’ answers to a monthly survey on a scale where any number above 50 indicates more builders view conditions as good than poor. In September, the index fell three points to 32. NAHB Chairman, Bill Owens, says buyer traffic has slowed. “Buyer traffic has weakened across much of the country, largely because of rising mortgage rates,” Owens said. “Builders also continue to face higher material costs, rising gas and diesel prices, and persistent labor shortages.” The drop in confidence coincides with a rising number of builders reporting that they’ve cut prices or used sales incentives to lure prospective home buyers. That means, though the news has been discouraging for home builders, it could be good for buyers. (source)
