An index of U.S. home builder optimism fell more than expected this month after reaching the highest level of the year in August, a private survey showed.
The National Association of Home Builders said its measure of builder confidence in demand for single-family houses was 68, compared with 71 last month. A reading greater than 50 means that builders view market conditions as more positive than negative.
“Builders are still reporting healthy demand for new homes across most markets,” association Chief Economist David Seiders said in a statement. “That bodes well for sales in coming months.”
New-home sales rose to a record in May and then declined in June and July as the economy experienced what Federal Reserve Board Chairman Alan Greenspan has termed a “soft patch.”
The builders association expects housing starts of 1.9 million in 2004, the most since 1978, and record single-family starts of 1.56 million.
