Home builders staying optimistic

By Staff -- Home Textiles Today, 8/2/2004 12:00:00 AM

WASHINGTON —

Despite a June slump in housing starts and building permits, single-family home builders remain "largely upbeat," the National Association of Home Builders (NAHB) reported.

The builders' trade group said its monthly Housing Market Index, compiled with Wells Fargo Bank, slipped a single point to a reading of 67 in July, but still remains two points above its prior-year level.

"Home sales continue to run hot this summer, and most builders don't see a slowdown on the horizon," said NAHB President Bobby Rayburn.

"Long-term mortgage rates subsided to around 6 percent during the survey period, and this likely contributed to builders' optimism," said David Seiders, NAHB chief economist. "Beyond that, the continuing robust rate of home-price appreciation, high level of new household formations, and perceptions of an improving economy are also helping drive the market."

The only significant decline in the monthly Housing Market Index was recorded in the index gauging traffic of prospective buyers, which fell three points from an above-average level in June.