Homebuilder Sentiment Drops

June 15, 2009
Matt Isleib

 

The NAHB (National Association of Home Builders) said their housing market index fell by 1 point in June. A number under 50 would indicate negative sentiment according to the NAHB. The index fell to 15 in June the first decline since the index hit an all time low of 8 in January. The index is based on 500 or so residential builders nationwide and is a reflection of their perceptions of the market.

The numbers for pending and existing home sales have increased as of late. Mortgage rates will be an important factor for the second half of this year. Any increase in home sales whether it be new construction or existing homes in the first half of the year was due in part to the first time home buyer credit and low mortgage rates. Now with mortgage rates up well over a full point in the past month it will play heavily on home sales for the rest of 2009.