The month of February marked a nine month low for home builders. The National Association of Home Builders/Wells Fargo builder sentiment index decreased to 58 in February from a revised reading of 61 in January. The index remains unchanged this month, remaining at 58.
Readings greater than 50 mean more respondents reported good market conditions. The index is comprised of three components: buyer traffic, current sales conditions, and sales expectations. Buyer traffic reportedly dropped to 39 in February, from 44 in January. However, buyer traffic bounced back up to 43 this month, which is still below the desired 50 mark.
According to CNBC “regionally, on a three-month moving average, the Midwest posted a one-point gain to 58 while the South was unchanged at 59. The West saw a three-point decline to 69 while the Northeast fell one point to 46, the only region still seeing negative builder sentiment.”