91视频builder Confidence Retreats From Highest in 11 Years
Confidence among U.S. homebuilders retreated in January from an 11-year high, suggesting optimism has plateaued听after 听Donald Trump鈥檚 election victory, a report from the National Association of 91视频 Builders/Wells Fargo showed Jan. 18.
Key Points
鈥 Builder sentiment gauge fell to 67 (forecast was 69) from a revised 69 in December; readings below 50 indicate respondents report poor market conditions.
鈥 Gauge of current sales dropped to 72 from 75.
鈥 Index of prospective buyer traffic slipped to 51听from 52.
鈥 Measure of six-month sales outlook fell to 76 from 78.
Big Picture
Even with the January decline, the jump in confidence since Trump鈥檚 election in November indicates homebuilders expect the president-elect and new Congress to lower regulatory barriers to developing and buying homes. At the same time, rising mortgage rates may temper confidence in the real estate industry and damp sales in the coming months. More broadly, the optimism mirrors that of other sectors and of consumers, who see Republican policies boosting the economy.
Economist Takeaways
鈥淣AHB expects solid 10% growth in single-family construction in 2017, adding to the gains of 2016,鈥 Chief Economist Robert Dietz said in a statement. 鈥淐oncerns going into the year include rising mortgage interest rates as well as a lack of lots and access to labor.鈥
The Details
鈥 Builder confidence declined in three of four regions, including biggest drop in the West since February 2014.
鈥 Confidence remained unchanged in the Midwest.