The National Association of Home Builders (NAHB) housing market index had its largest decline in four years as housing affordability concerns rise. The November reading of builder confidence in the market of new single-family homes came in at 60, well below the October reading of 68 and economists estimate of 67. A print of above the 50 level shows that builders believe business are good. The NAHB noted that despite the sharp drop, builder sentiment still remains in positive territory. Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices.
US Equities extended losses following the miss, while the dollar weakened against its major trading partners. The greenback fell below the November low against the Japanese yen, while the euro appears poised for its fifth straight daily gain against the dollar. Tomorrow, Tuesday November 20th the Commerce Department is expected to release Building Permits and Housing Starts, economists are expecting slight improvements in both readings.
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Ed Moya