Builder confidence across the country in the market for newly built, single-family homes in February fell in February, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) report released this week.
"Overall, builder sentiment remains fairly solid, with this slight downturn largely attributable to the unusually high snow levels across much of the nation," said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
"For the past eight months, confidence levels have held in the mid- to upper range, which is consistent with a modest, ongoing recovery," said NAHB Chief Economist David Crowe. "Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead."
Derived from a monthly survey that NAHB report gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores for each component are then used to calculate a seasonally adjusted index.
Looking at the three-month moving averages for regional scores, the Northeast, Midwest and South fell while the West rose.