Builder confidence slides
April 16th, 2007, 11:26 am · Post a Comment · posted by mistywilliams
Builder confidence in the housing market’s future continued to drop in
April, as fears about the subprime mortgage market deepened, according
to a survey by the National Association of Home Builders (NAHB) and
Wells Fargo. The Housing Market Index declined three points to 33 this
month, the lowest level since December.Based on a monthly survey, the index gauges builder perceptions of
single-family home sales, sales expectations and traffic of prospective
buyers.The subprime mortgage meltdown has caused lenders to
drastically tighten standards — making it difficult for many
prospective first-time buyers to qualify for loans. And that’s got
builders worried, especially those that cater to the entry-level
market. Analysts say it’s unclear just how much the subprime crisis
will impact the housing market as a whole."While we still
expect to see some improvements in housing market activity beginning
later this year, the downside risks and uncertainties surrounding that
forecast are considerable," NAHB chief economist David Seiders said in
a statement.
