Housing Index Rises

The NAHB Housing Market Index rose two points to 65 in November, according to the National Association of Home Builders.In addition, the index gauging builder sentiment about the current single-family sales market rose two points, to 71, and the measure of expected sales over the next six months increased two points, to 70. The reading for prospective homebuyer traffic rose one point, to 48, the NAHB said. "With long-term mortgage rates slipping below 6%, builders are certainly finding buyers who can qualify to purchase homes in most price ranges right now," said NAHB president Gary Garczynski. Regarding the possibility of a housing price "bubble," Mr. Garczynski said markets where demand is exceeding supply and rising land prices are pushing up builders' costs present no reason for concern. But he said builders in some areas are lowering their expectations for sales in the top price ranges because of losses in the stock market by prospective buyers. Anything above 50 in the index and its components, which are based on surveys of hundreds of builders, means homebuilders believe that the single-family housing market is doing well. The NAHB can be found online at http://www.nahb.com.