The NAHB/Wells Fargo Housing Market Index took a dive in June, falling 5 points to 17 as the expiration of the tax credit for first time and repeat buyers ended. A reading of 50 indicates home builders are neither optimistic nor pessimistic.
NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Michigan, said “… the reduction in consumer activity may have been more dramatic than some builders had anticipated, which resulted in their lower confidence levels.”
Judging from the plunge in the U.S. MBA’s survey of purchase applications, interest in the housing market has waned in the wake of the tax credit’s expiration.
That was to be expected; however, early indications suggest that the pullback in sales is a bit more pronounced than many have been forecasting. Stay tuned.
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