WASHINGTON - In a decline that officials attributed to unusually bad weather, builder confidence in the market for new single-family homes fell four points to 65 in February, its lowest level since a similar reading in July, according to the National Association of Home Builders Housing Market Index, a monthly gauge of builder sentiment.
This months index compares with Januarys revised 69-point level, first reported as 68.
Each of the components of the HMI index dipped in February.
For February 2003, the HMIs component index gauging current sales of new single-family homes declined to 72 from 76 while the component gauging expectations for the next six months was 73 in February, down three points from Januarys revised 76 level.
Meanwhile, the index gauging traffic of prospective buyers fell to 46 from a revised 51 in December, first reported as 50.
NAHB has anticipated a slowdown from the record pace of new-home sales in the final months of 2003, and the latest HMI indicates builder expectations are consistent with that, said NAHB Economist Michael Carliner. Still, the outlook for sales conditions remains quite good heading into the spring home buying season.
The HMI is derived from a monthly survey of builders, who rate current sales of single-family homes and sales expectations for the next six months, as well as traffic of prospective buyers. A number greater than 50 indicates that more builders view sales conditions as good rather than poor.
