Builders Counting on Lower Rates to Break the Traffic Jam

Builder confidence levels continued kicking a sad little can down the same long and lonesome road. The September National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) held flat at 32, extending the streak to 17 consecutive months below the key 50 mark that separates expansion from contraction. While the overall index isn't pretty, there was some positive movement in the component index that focuses on sales expectations over the next 6 months, which rose to its highest levels in 6 months. These expectations are responsible for keeping overall confidence from sinking to new long-term lows--largely weighed down by historically low buyer traffic. With affordability being a key concern, the recent drop in mortgage rates could help break that traffic