Housing Market Index Drops Two Points

WASHINGTON, DC-Builders’ confidence in the housing market continued its downward slide this month, dropping another two points, according to the National Association of Home Builders. The group’s index reached its lowest point since January. The last time the index reached similar levels was in 1997.

NAHB, a trade association representing contractors and professionals in all aspects of home, multifamily and light commercial construction, polls homebuilders each month for their take on the housing market. NAHB officials blamed April’s drop on weakening job markets and lower consumer confidence.

“With long-term mortgage rates hovering around 7%, the financing climate for home purchases remains very good,” says NAHB president Bruce Smith, a home builder from Walnut Creek, CA. “However, recent signs of continued weakening in the broader economy–including higher unemployment figures and the University of Michigan’s report showing lower consumer sentiment for early April–have likely played a role in builders lowering their assessments of current home sales and expected sales in the next six months.”