November 19, 2013
Statement From LIA Chief Economist John Rizzo on NAHB builder sentiment
By: Dr. John A. Rizzo
"The National Association of Home Builders (NAHB)/Wells Fargo builder sentiment index registered at 54 in November, the sixth straight month that that index has exceeded 50. Readings in excess of 50 indicate that sales conditions are considered to be good. Mortgage rates, which have risen since the spring but still remain close to historically low levels, do not appear to have curtailed the housing recovery. But the NAHB notes that builder and consumer confidence have been somewhat shaken by the Federal Government shutdown and concerns over budgetary fights in the future. Given the vast political fallout from the shutdown, however, a future shutdown seems highly unlikely and one may reasonably anticipate that the housing recovery will continue."