The National Association of Home Builders keeps a monthly measure of how builders view the market for newly built homes. Its Housing Market Index is based on a survey which scores builders’ answers on a scale where any number above 50 indicates more builders view conditions as good than poor. In November, the index fell six points to 34, as rising mortgage rates dampened builder confidence. But Robert Dietz, NAHB’s chief economist, says there are signs that conditions may soon improve. “While builder sentiment was down again in November, recent macroeconomic data point to improving conditions for home construction in the coming months,” Dietz said. “In particular, the 10-year Treasury rate moved back to 4.5 percent for the first time since late September, which will help bring mortgage rates [down].” In the meantime, a rising number of builders say they’ve reduced prices in an effort to entice buyers. Additionally, 60 percent of builders say they’re providing sales incentives. (source)
