Homebuilder confidence in the market for new single-family homes continued to deteriorate in August, edging down to a 17-month-low as the National Association of Home Builders' housing market index slipped to 13.
The July reading of 14 was not revised. A Thomson Reuters' poll of economists had predicted a level of 15 for August.
Instead, two of the three component indexes fell. The current single-family home sales index slipped to 14 from 15 in August and the sales expectations index for the next six months dropped to 18 from 21. Prospective buyer traffic was unchanged at 10.
"Today's report reflects single-family home builders' concerns about current and future economic conditions and about the increasing hesitancy they are seeing among potential home buyers," NAHB chief economist David Crowe said Monday. "It also reflects the frustration that builders are feeling regarding the effects that foreclosed property sales are having on the new-homes market."