Government shutdown dents homebuilder confidence
According to CNBC, homebuilder confidence slipped more than expected in October, as the National Association of Home Builders index dropped 2 points from September. Builders attributed the slump to a combination of continuing cost challenges in the market and the government shutdown.
"A spike in mortgage interest rates along with the paralysis in Washington that led to the government shutdown and uncertainty regarding the nation's debt limit have caused builders and consumers to take pause," said NAHB Chief Economist David Crowe. "However, interest rates remain near historic lows and we don't expect the level of rates to have a major impact on sales and starts going forward."
"The NAHB estimate of 875,000 to 900,000 total housing starts [a seasonally adjusted annualized rate for September] is based on continuing improvement in single-family starts and ongoing volatility in multifamily construction," Crowe said.