The single-family homebuilders' confidence index declined two points in October, falling to 55 from September's downwardly revised reading of 57. The index, which turned positive in June and peaked in August, waned due to the government shutdown and the resultant market uncertainty.

Builder confidence in the single-family housing market reached a four-month low in October, falling two points to 55 from a downwardly revised September reading, according to the National Association of Home Builders/Wells Fargo Housing Market Index???(R)???AE'?N????e'?N,A+(HMI).

"Builder optimism remains above 50, and we are still seeing signs of pent-up demand in many markets across the country," said NAHB Chairman Rick Judson. "This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availability of labor and lots and uncertainty in Washington."

All of the HMI's three components each fell two points in October. The component gauging current sales conditions registered 58, while the component gauging sales expectations in the next six months posted a reading of 62 and the component gauging traffic of prospective buyers was 44. Any number over 50 indicates that more builders view conditions as good than poor.

"A spike in mortgage interest rates, along with the paralysis in Washington that led to the government shutdown and uncertainty regarding the nation's debt limit, have caused builders and consumers to take pause," said NAHB Chief Economist David Crowe. "However, interest rates remain near historic lows and we don't expect the level of rates to have a major impact on sales and starts going forward. Once this government impasse is resolved, we expect builder and consumer optimism will bounce back."

HMI tables can be found at???(R)???AE'?N????e'?N,A+nahb.org/hmi.???(R)???AE'?N????e'?N,A+