Builders regain some confidence in housing market

Members of the nation's construction industry say they're slightly more optimistic about the state of the housing market after seeing signs that some Americans were committed to moving into new homes.

The National Association of Home Builders reported that its Housing Market Index rose one point to 16 for the month of November, with builders growing especially confident regarding the prospect of new home sales for the next six months. Officials with the group said that though home sales remained at a reduced level, builders are encouraged with the caliber of homebuyer that's currently considering moving into a new home.

"Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging," said NAHB chairman Bob Jones. "the quality of that traffic seems to be getting better - meaning that more people appear to be serious about buying in the near future."

The component which gauges future expectations rose two points in November to a reading of 25. As a whole, readings below 50 indicate that more builders feel conditions are poor rather than good.

Rising builder confidence came on the heels of a drop in mortgage activity. The Mortgage Bankers Association reported that relocating families submitted 5 percent fewer applications to purchase a home during the week ending November 12.
 

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