Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Wednesday 17 February
US Financial Front:
American homebuilder sentiment slips in February
ALEX VEIGA Crowe, the NAHB’s chief A man installs a roof on a new home under construction in Atlanta. On Tuesday, Feb. 16, 2016,
AP Business Writer economist. the National Association of Home Builders/Wells Fargo released its February index of builder
U.S. homebuilders are feel- Sales of new homes surged sentiment.
ing less confident about 14.5 percent last year to
their sales prospects 501,000, marking the stron- (AP Photo/John Bazemore)
ahead of the spring home- gest year for this segment
selling season, though they of the housing market
remain positive overall that since 2007.
the housing market will Steady job growth that cut
continue to improve this the unemployment rate
year. to an eight-year low of 4.9
The National Association of percent has given many
Home Builders/Wells Fargo homebuyers increased
builder sentiment index re- confidence, while rela-
leased Tuesday slipped to tively low mortgage rates
58 this month, down three improved affordability.
points from a revised read- Builders have responded
ing of 61 in January. to the demand by increas-
The index had been hov- ing construction. Over the
ering in the low 60s since course of 2015, ground
June. Readings above breakings rose 10.8 per-
50 indicate more builders cent to 1.1 million.
view sales conditions as And yet, construction has
good, rather than poor. yet to rebound fully from
Builders’ view of current the housing bust nearly a
sales conditions and a decade ago, while sales
measure of traffic by pro- of new homes continue to
spective buyers declined. run below the 52-year his-
But their outlook for sales toric average of 655,200.
over the next six months January’s new home sales
edged higher. figures are due out next
The latest readings come week.
as the annual spring buy- Whether that progress con-
ing season ramps up. Typi- tinues this year will depend
cally, the season sets the largely on the U.S. econo-
pattern for residential hiring my continuing to improve.
and construction for much That’s come increasingly
of the rest of the year. into doubt in recent weeks
Several factors have build- as faltering growth in coun-
ers feeling less optimis- tries like China, the world’s
tic this month, including second-largest economy,
heightened concerns of and financial market tur-
late about a slowdown in moil have heightened
the global economy and concerns that the U.S.
its potential impact on the economy could be in for a
U.S., and rising costs for stumble.
labor and ready-to-build This month’s builder index
land parcels. was based on 344 respon-
Even so, the builders’ trade dents.
association continues to Builders’ view of current
forecast modest growth for sales conditions for single-
housing this year. family homes fell three
“Historically low mortgage points to 65, while their
rates, steady job gains, gauge of traffic by pro-
improved household for- spective buyers fell five
mations and significant points to 39, the lowest
pent-up demand all point level since May last year.
to a gradual upward Builders’ outlook for sales
trend for housing in the over the next six months
year ahead,” said David rose one point to 65.q
