Home Builders Positive About Market Strength

WASHINGTON D.C. - Home builders continue to sound an overall positive note regarding the ongoing strength of the market for newly built single-family homes in February, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released Tuesday.

Though unusually wet weather conditions across much of the country helped push the index down two points in February, builder expectations for the next six months held steady from the beginning of the year.

?EUR??,,????'??On the whole, builders are still expressing very positive views of conditions in the housing market,?EUR??,,????'?? NAHB President Dave Wilson said. Mortgage interest rates have actually improved since January, and builder confidence as measured by the HMI is ahead of where it was this time last year.?EUR??,,????'??

?EUR??,,????'??The main concern builders are citing right now pertains to availability and pricing of lots for development - which itself is a symptom of strong buyer demand,?EUR??,,????'?? added NAHB Chief Economist David Seiders. ?EUR??,,????'??Demand, in turn, continues to be driven by solid job and income growth, low mortgage rates and the investment aspects of homeownership.?EUR??,,????'??

Regional HMI scores were mixed in February. With a two-point decline in their HMI to 79, western builders were nevertheless still the most optimistic of their colleagues across the nation. Southern and Midwestern builders each posted one-point HMI declines, to 73 and 54, respectively, while builders in the Northeast posted a two-point gain to 67 this month.