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August 27, 2005
BUILDER CONFIDENCE DECLINES IN AUGUST
The high cost of land, a shortage of lots for homebuilding and rising mortgage rates all contributed to a decline in the confidence level of the nation's homebuilders this month, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Following July's reading of 70, the seasonally adjusted HMI decreased three points to 67 in August. The HMI has remained within a 67 to 72 confidence range since April 2004; an HMI above 50 indicates that more builders view sales conditions as good versus poor.
Two of the HMI's three components decreased in August. The component measuring current sales fell four points to 72, while the confidence gauge for the traffic of prospective buyers declined five points to 50. The component measuring future sales remained unchanged at 77. Regionally, homebuilders in the West remain the most confident, with an overall seasonally adjusted HMI of 85. News Details
Posted by QiRealtyEditor at August 27, 2005 07:12 PM