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Builder Confidence Unchanged; Affordability vs Geography; Rates Back Away From Lows

Builder Confidence Unchanged; Affordability vs Geography; Rates Back Away From Lows

Builder confidence in the new home market, while on the surface unchanged from December, has now dropped 5 points since establishing a decade-long high in October. The National Association of Home Builders (NAHB) said on Tuesday that its Housing Market Index (HMI), jointly produced with Wells Fargo Bank, remained at 60 this month. However that stabilized number occurred only because the December index, originally at 61, was simultaneously downgraded by one point. The HMI is derived from a monthly survey NAHB conducts among its new home builder members. They are asked to gauge the current market for new homes as "good," "fair" or "poor" and to do the same regarding their expectations over the next six months. They are also asked to rate traffic of prospective buyers as "high to very high,"
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