National Association of Homebuilders Index Shows Plunging Confidence Levels
In yet another indication that the big house-building party may be coming to a close, the National Association of Home Builders released its November index of builders' confidence Wednesday.
The index was down 8 points in one month to 60, representing the largest one-month decline since Sept.2001, and the lowest level in more than two and a half years.
Of note is that the component in the index that measures traffic from prospective buyers was down 5 points to 46, adding more weight to the recent decline posted here.
Thursday morning, as this issue was in final edits, PBB noted that the Commerce Department reported new housing starts were down 5.6% in October. Analysts (those who make their money tracking this stuff) had been calling for a drop of 2.8% for the month.
Building permits were also down 6.7%-- the sharpest drop in six years.