Builder Confidence Holds Steady
February 6, 2006,
A drop in mortgage rates and a boost in consumer confidence helped stabilize market expectations of single-family home builders during January. Builder confidence held steady for a second straight month, after a six-month slide.
“Housing markets across the country have cooled, as predicted, and builders are aware than some slowing in demand is inevitable following the record-breaking sales for the past three years,” said David Pressley, NAHB president.
David Seiders, chief economist of the trade group, commented, “Single-family housing affordability has been eroded by the accumulation of large house price increases in recent years, but some softening of long-term interest rates since the early-December survey helped to buoy builder attitudes. This has been bolstered by the fact that consumer confidence has rebounded nicely form post-Hurricane Katrina lows.”