Market Uncertainty Affects US Builder Confidence

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Builder confidence for newly built, single-family homes in the U.S. remained unchanged in November, as market uncertainty continues to challenge builders and buyers alike. 

The National Association of Home Builders' index for builder confidence in November was unaltered from last month's downwardly revised level of 54. 

Buyers have shown hesitation in the housing market in the wake of the recent government shutdown. Increasing mortgage rates are also holding potential buyers back, analysts say. 

However, while homebuilders continue to struggle with rising construction costs and low appraisals, they remain optimistic for the most part, NAHB reports. 

"Policy and economic uncertainty is undermining consumer confidence," NAHB chief economist David Crowe, said in the report. "The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline."

The index component gauging current sales remained at 58 in November. On the other hand, the components measuring future sales and traffic of prospective buyers dropped from the previous month. 

Regionally, confidence remained the same in the South and the West, while it fell in the Midwest and increased in the Northeast.