Housing has been a relative bright spot for the US economy in recent months, but today’s report on homebuilder sentiment for the month of November showed that builder confidence declined and was weaker than expected. While economists were expecting the NAHB’s index of home builder confidence to be unchanged at 64, the actual reading came in at 62. Although today’s report was the first monthly decline in six months, the decline was minuscule in the grand scheme of things.
The table to the right breaks down today’s report by each of its components as well as on a regional basis. While both Present and Future sales saw notable declines this month (for Future Sales November’s drop was the largest since February 2014), traffic actually saw a slight increase. Looking at the regional breakdown of sentiment, all of this month’s decline came from weaker confidence in the South. Every other region of the country was either flat or slightly higher.