The US housing market has seen builder confidence drop for the first time in four months, according to new figures from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
Revisions saw last months' headline figure drop from 59 to 58, and September's disappointed too. Coming in at 58, that's below economist expectations of a flat reading of 59 from that unrevised figure.
HMI component indexes were mixed in September. While the component gauging current sales conditions held unchanged at 62, the component gauging sales expectations in the next six months declined three points to 65 and the component gauging traffic of prospective buyers increased one point, to 47.
NAHB chief economist David Crowe:
Following a solid run up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue.