WASHINGTON (9/18/13)--U.S. home-builder confidence in September is at the highest level in eight years, indicating that housing should remain positive for the U.S. economy, even though new signs have surfaced that show the housing market is losing some momentum (Bloomberg.com, The Wall Street Journal and Moody's Economy.com Sept. 17).
The National Association of Home Builders (NAHB)/Wells Fargo confidence index remained at 58 this month--the same as in August--matching the best reading since November 2005, NAHB said Tuesday.
Readings greater than 50 indicate more builders see conditions as good than poor.
Although work orders received during the past few months will likely maintain gains in construction, more rapid growth in hiring and wages are necessary to prompt larger increases in consumer demand, Bloomberg said.
The headwinds of tight credit, declining amounts of lots for development and rising labor costs are causing consumers to take a wait-and-see attitude, following a strong buildup of consumer confidence during the past year, David Crowe, NAHB chief economist said in a statement.