The National Association of Home Builders (NAHB)/Wells Fargo housing market index for November decreased by three points from a revised reading of 65 in October to 62. The October reading was the highest since the end of the housing boom in late 2005. The November reading was lower than the consensus forecast of 64 from a Bloomberg survey of economists.
An index reading above 50 indicates that more builders view sales conditions as good than view them as poor.
The current sales conditions subindex dropped three points in November to settle at 67 and the subindex that estimates prospective buyer traffic rose from 47 to 48. The sales expectations subindex fell five points from 75 to 70.
In the NAHB’s regions, the three-month moving average index rose or remained unchanged in all four. In the South and Midwest the index readings remained flat at 65 and 60, respectively, in November. In the Northeast the index rose from 47 to 50 and in the West the moving averaged jumped four points 73.
The current average interest rate for a conventional 30-year fixed mortgage loan is 4.01%, according to Mortgage News Daily. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.20%.
The NAHB/Wells Fargo housing market index has remained in the 60-point range since June. Prior to mid-2013, the index had not risen to 50 since mid-2006.