Mon, Jan 18, 2021 @ 02:07 GMT
Home Contributors Fundamental Analysis Homebuilder Confidence Falls in April

Homebuilder Confidence Falls in April

The NAHB/Wells Fargo Housing Market Index fell 3 points in April as all components declined on the month. Despite the dip, the index remains at a level consistent with continued gains in new home construction.

Despite Dip, Sentiment Remains Solid

After hitting a fresh cycle-high in March, the NAHB Housing Market Index (HMI) fell 3 points in April to 68. All three HMI components edged lower on the month. The current sales and expected sales measures each fell 3 points.

Despite the pull-back, confidence remains relatively high. The present sales index has trended above 70 for five consecutive months, signaling strong demand for new homes.

Continued Improvement in Residential Construction

All areas except the West saw sentiment fall in April. After a late season blast of winter weather, the Northeast reported an 8-point drop, partially reversing March’s 14-point rise.

The solid readings for builder sentiment coincide with stronger reports for retail sales at home improvement stores, which are up solidly on a three-month annualized basis. Residential investment is one of the few bright spots for first quarter growth.

Wells Fargo Securities
Wells Fargo Securities Economics Group publications are produced by Wells Fargo Securities, LLC, a U.S broker-dealer registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC, distributes these publications directly and through subsidiaries including, but not limited to, Wells Fargo & Company, Wells Fargo Bank N.A, Wells Fargo Advisors, LLC, and Wells Fargo Securities International Limited. The information and opinions herein are for general information use only. Wells Fargo Securities, LLC does not guarantee their accuracy or completeness, nor does Wells Fargo Securities, LLC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. Wells Fargo Securities, LLC is a separate legal entity and distinct from affiliated banks and is a wholly owned subsidiary of Wells Fargo & Company © 2010 Wells Fargo Securities, LLC.

Featured Analysis

Learn Forex Trading