WASHINGTON (MarketWatch) — Builder confidence rose for the first time in October in five months, according to a report released Monday that nonetheless showed conditions at a weak level.
The National Association of Home Builders/Wells Fargo housing market index rose 3 points to 16 in October to bring the gauge to the same level as June. Economists polled by MarketWatch expected the gauge to remain stuck at 13.
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All three of the index’s components — current sales conditions, sales expectations and traffic of prospective buyers — rose.
The report measures confidence in the market for newly built, single-family homes, and any number over 50 indicates that more builders view conditions as good than poor. The housing market index hasn’t been above 50 since April 2006 no credit check payday loans.
“The new-homes market is finally moving past the lull that occurred when the home buyer tax credits expired and economic growth stalled this summer,” said NAHB Chief Economist David Crowe in a statement.
“While challenges such as competition from foreclosures, inaccurate appraisal values, and general consumer uncertainty about the economy and job market continue to be major factors, builders have seen a slight increase in consumers who are considering a home purchase. The toughest obstacles really come down to financing – the scarcity of construction credit for builders along with tougher mortgage requirements for consumers.”
