Homebuilder Confidence Ticked Down in December

The National Association of Home Builders (NAHB)/Wells Fargo housing market index for December decreased by one point from a reading of 62 in November to 61. The reading was lower than the consensus forecast of 63 from a Bloomberg survey of economists. In October, the NAHB index reached 64, its highest level since the end of the housing boom in late 2005.

An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.

The current sales conditions subindex dropped a point in December to settle at 66, and the subindex that estimates prospective buyer traffic dropped from 48 to 46. The sales expectations subindex fell two points from 69 to 67.

In the NAHB’s regions, the three-month moving average index rose in two and fell in two. In the West, the index rose three points to 76, and in the Northeast the index readings rose a point to 50. In the Midwest, the index slipped from 60 to 58 and in the South the index shed a point to 64.
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The current average interest rate for a conventional 30-year fixed mortgage loan is 4.04%, according to Mortgage News Daily. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.20%.

The NAHB/Wells Fargo housing market index has remained in the 60-point range since June. Prior to mid-2013, the index had not risen to 50 since mid-2006.