Survey: Homebuilders’ confidence dips slightly

U.S. homebuilders’ confidence dropped this month after surging to the highest level in nearly a year in September.

Even so, builders remain optimistic overall about sales growth in months ahead, a reflection of how steady job gains are leading more Americans to buy newly built homes.

The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday fell two points this month to 63 following a reading of 65 in September.

Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has held above 60 the past two months after hovering at 58 earlier this year.

The pullback in the latest builder sentiment index is in line with what analysts polled by FactSet were expecting.

Builders’ view of current sales and a gauge of traffic by prospective buyers declined. Their outlook for sales over the next six months increased.

A strengthening job market and mortgage rates hovering near all-time lows have helped stoke demand for homeownership, pushing up sales of new and previously occupied homes.

“The October reading represents a mild pullback from a jump in September, and indicates that the housing market continues to make slow and steady gains,” said Robert Dietz, the NAHB’s chief economist.

Despite declining in August, sales of new U.S. homes were 20.1 percent higher through the first eight months of this year than in the same stretch of 2015.

All told, new home sales declined 7.6 percent in August to a seasonally adjusted annual rate of 609,000 units. September new-home sales figures are due out next week.