U.S. Home-Builder Confidence Slips in November
November 18 2019 - 10:29AM
Dow Jones News
By Eric Morath
WASHINGTON--A gauge of U.S. home-builder confidence edged lower
in November, the latest sign the housing market is moving sideways
this fall.
--The National Association of Homebuilders said Monday its
housing market index fell to 70 from a level of 71 in October. The
October reading was the index's highest level since February 2018.
A reading above 50 indicates that more builders view conditions as
good than poor.
--Economists surveyed by The Wall Street Journal had expected a
reading of 71 for November.
--Low mortgage rates and job growth helped spur the index's
improvement from 60 a year ago, the home builders said. But
builders continue to grapple with affordability headwinds,
including a lack of buildable lots and workers, NAHB chief
economist Robert Dietz said.
-- The average rate on a 30-year, fixed-rate mortgage was 3.75%
for the week ended Nov. 14. While mortgage rates remain
historically low, they have edged higher since early September,
according to Freddie Mac.
--The data is the latest sign the housing market has stabilized
this fall after solid growth over the summer. Sales of previously
owned U.S. homes fell in September after rising during the summer
months, in part due to lack of supply of homes to buy. Builders
have generally stepped up building new homes since 2011, but have
struggled to fully meet the demand, especially for more affordable
properties. The Commerce Department will release new data Tuesday
on housing construction in October.
Write to Eric Morath at eric.morath@wsj.com
(END) Dow Jones Newswires
November 18, 2019 10:14 ET (15:14 GMT)
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