Housing rebound? Homebuilder confidence reaches seven-year high.
US homebuilder confidence reached its highest level in nearly seven years in January, suggesting that prospects for housing market remain upbeat. But the National Association of Homebuilders said prolonged negotiations over fiscal policy had caused some uncertainty.
U.S. homebuilder confidence in the market for single family homes held steady at near seven year highs in January, suggesting the outlook for the housing market remained upbeat.
The¬†National¬†Association¬†of¬†Home¬†Builders¬†said prolonged negotiations over fiscal policy had caused some uncertainty among¬†builders¬†this month.
A reading below 50 means more¬†builders¬†view market conditions as poor than favorable. The index has not been above 50 since April 2006.
"Conditions in the housing market look much better now than at the beginning¬†of¬†2012 and an increasing numberof¬†housing markets are showing signs¬†of¬†recovery, which should bode well for future¬†home¬†sales later this year," said NAHB chairman Barry Rutenberg.
"Uncertainties stemming from last month's fiscal cliff negotiations contributed to the pause in builder confidence and continuing discussions among policymakers related to spending cuts and the future¬†of¬†the mortgage interest deduction could put a damper on housing demand in the coming months."
A measure¬†of¬†sales expectations in the next six months slipped a point to 49, while a gauge¬†of¬†current sales conditions was unchanged at 51. The prospective buyers index rose a point to 37. (Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)