Dive Brief:
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Home builders remained solidly optimistic all summer about the market for single-family homes, but that changed this month.
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The National Association of Home Builders/Wells Fargo Housing Market Index revealed Thursday that builder confidence fell five points in October after four straight months of optimism.
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The sudden dip, explained NAHB Chairman Kevin Kelly, brings the level of home builder confidence to a level that “is in line with the gradual pace of the housing recovery.”
Dive Insight:
Despite the decline in confidence, “builders are still positive about the housing market,” noted NAHB Chief Economist David Crowe, who said he stands by his September prediction for “continued growth of the housing market” as mortgage interest rates remain low, unemployment continues to drop and demand for new housing grows.