After ascending to the highest level in nearly a dozen years, home builder confidence settled back this month.
In April, the
Housing Market Index was determined to be 68. Anything above 50 indicates more builders view conditions as good.
The index, which is based on a survey of home builders, fell from 71 the prior month, the highest it had been since June 2005.
Still, the index stands at the second-highest level so far this year, according to data from the National Association of Home Builders and Wells Fargo, which jointly produced the index.
“Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers,” NAHB Chairman Granger MacDonald said in the report.
An impressive gain has been made since April 2016, when the index was only 58.
Based on a three-month moving average, confidence in the Northeast fell two points, leaving the index there at 46.
No month-over-month change was reported for the South’s 68 index.
A one-point gain left the index at 77 in the West and 68 in the Midwest.
The U.S. index is determined based on three components. A component measuring buyer traffic slipped a point from March to 52.
Another component, one that reflects current sales conditions, was down three points to 74.
Also falling three points to 75 was the component indicating expected sales for the next six months.
