Builder confidence in the single family housing market rose slightly during October, according to a survey conducted by the National Association of Home Builders.
NAHB noted the reading of 16 on its confidence index marks the first improvement registered in five months, and returns it to June levels. (Although the reading improved, it is still far below the level of 50, which indicates more builders view conditions as good than poor.)
"Builders are starting to see some flickers of interest among potential buyers, and are hopeful that this interest will translate to more sales in the coming months," said NAHB chairman Bob Jones, a home builder from Bloomfield Hills, Mich.
But many NAHB members say they still have no access to credit for building homes. The trade group added that "there is a real concern that we will not be able to meet the pent-up demand when consumers are ready to get back in the market. This problem threatens to severely slow the housing and economic recovery."
NAHB compiles its housing market index (HMI) with the help of Wells Fargo & Co., a top ranked national lender.
