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(CEP News) - A report from Wells Fargo and the National Association of Home Builders (NAHB) reports that confidence amongst homebuilders has plummeted to an all-time low in October.
The housing market index, a measure of builder confidence in the U.S., fell 3 points to 14, following a downwardly revised reading of 17 in the prior month. The index cited "profound uncertainties" The index, which is made of three components, has a 22-year history. The sales expectations index tumbled 9 points to 19, while the present housing index for single-family homes fell 3 point to 13, and the component looking at traffic of prospective buyers fell 2 points to 12. A rating above 50 indicates optimism from homebuilders. Since March 2007, the index has fallen from a reading of 36. The latest mortgage averages will provide little solace to homebuilders. According to Bankrate.com, the rate for a 30-year fixed mortgage rose to 6.38% on Thursday, up from 5.87% last week. By Patrick McGee,
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, edited by Stephen Huebl,
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