The National Association of Home Builders/Wells Fargo Housing Market Index fell to 58 points in February, down three points from January’s revised reading.
“Builders are reflecting consumers concerns about recent negative economic trends. However, the fundamentals are in place for continued growth of the housing market,” said NAHB Chief Economist David Crowe. “Historically low mortgage rates, steady job gains, improved household formation and significant pent up demand all point to a gradual upward trend for housing in the year ahead.”
The majority of index components posted losses in February. Current sales conditions fell three points to 65, and the buyer traffic index component fell five points to 39. However, sales expectations for the next six months increased one point to 65.
The three-month moving averages for regional HMI scores declined. The West fell three points to 72, the Midwest fell one point to 57, and the Northeast and South fell two points to 47 and 59 respectively.
Read the NAHB release.