The builder confidence in the United States for the newly-built, single-family homes dropped in the month of February, resulting into a four-month low, because of the harsh weather conditions prevailing in the country.
The new trends were shown in a leading industry report by the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which was released on Tuesday.
According to the report, the builder sentiment index dropped two points to 55 in February. This is the lowest level in the builder sentiment index recorded since October last year.
Any reading which reflects more than 50 indicate that large number of builders view sales conditions as positive rather than being negative or poor.
Releasing a statement, NAHB Chairman Tom Woods said, “Overall, builder sentiment remains fairly solid, with this slight downturn largely attributable to the unusually high snow levels across much of the nation.”
David Crowe, chief economist of NAHB, said, “For the past eight months, confidence levels held in the mid-to upper 50s range, which is consistent with a modest ongoing recovery.”
Crowe added that the country’s housing market will remain of the track of improvement in the next year. He believes the housing sector is likely to get a boost from “the optimistic job growth, historically low mortgage rates and affordable home prices.”
The HMI index that gauged view on the current conditions of sales declined single point to 61 in February, while the component that measured traffic of the prospective buyers tumbled five points to 39. On the other hand, the component that gauged sales expectations for the coming six months held steady at 60.