Builder confidence in the market for new single-family homes declined slightly in October, according to the newest NAHB survey.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped five points to 54 on a 100-point scale.
"We are seeing a return to the mid-50s index level trend established earlier in the summer, which is in line with the gradual pace of the housing recovery," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. "While there was a dip this month, builders are still positive about the housing market."
The index gauges builders’ mood on the construction market. A figure above 50 indicates most builders are bullish on prospects.
"After the HMI posted a nine-year high in September, it's not surprising to see the number drop in October," said NAHB Chief Economist David Crowe. "However, historically low mortgage interest rates, steady job gains, and significant pent up demand all point to continued growth of the housing market."