Builder confidence in the market for new, single-family homes was unchanged in September, with a reading of 58 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This follows four months of improvement,
"While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates," said NAHB Chairman Rick Judson, a home builder from Charlotte, NC. "Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past."
"Following a solid run up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue," said NAHB Chief Economist David Crowe.
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