U.S. Home Builders' Confidence Falls for Fourth Time in Five Months
Source: Dow Jones Business News
May 18, 2015, 10:14:00 AM EDT
By Jeffrey Sparshott
WASHINGTON--Confidence among U.S. home builders fell for the fourth time in five months, a sign the housing market may be slow to pick up after an up-and-down winter.
The National Association of Home Builders' confidence index fell two points to a reading of 54 in May, the industry group said Monday. A reading above 50 means most builders generally hold a favorable view of the market for newly built, single-family homes.
Economists surveyed by The Wall Street Journal had expected a May confidence reading of 58.
"Consumers are exhibiting caution and want to be on more stable financial footing before purchasing a home," NAHB Chief Economist David Crowe said in a statement.
Despite the latest fall, the home builder's group said the second quarter of the year is shaping up as solid. Mr. Crowe noted a measure of future sales expectations has been tracking up in recent months, mortgage rates remain low and house prices appear affordable. "These factors should spur the release of pent-up demand moving forward," he said.
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