Builder confidence increases in July

Builder confidence in the market for newly built, single-family homes rose 2 points on the National Association of Home Builders/Wells Fargo Housing Market Index for July. The gain largely offsets a 3-point dip recorded in June, and marks the ninth time out of the past 10 months in which the index has held within the same 3-point range.
“The improvement in builder confidence in July is a positive sign that the outlook perhaps isn't quite as bleak as was feared in June,” said Bob Nielsen, chairman of NAHB and a home builder in Reno, Nev. “While builders continue to confront serious challenges with regard to competition from foreclosed properties that are priced below replacement cost, inaccurate appraisals of new homes, and a very restrictive lending environment for new home construction, select markets are showing gradual improvement as consumers begin to take advantage of very favorable buying conditions.”