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Builder Confidence Rises One Point in June


WASHINGTON, June 18 - Builder confidence in the market for newly built,
single-family homes gained one point in June from a slightly revised
level in the previous month to rest at 29 on the National Association of
Home Builders/Wells Fargo Housing Market Index (HMI), released today.
This is the highest level the index has attained since May of 2007.

"This month's modest uptick in builder confidence comes on the heels of
a four-point gain in May and is reflective of the continued, gradual
improvement we are seeing in many individual housing markets as more
buyers decide to take advantage of today's low prices and interest
rates," said Barry Rutenberg, chairman of the National Association of
Home Builders (NAHB) and a home builder from Gainesville, Fla.  

"While the June HMI is in keeping with our forecast for gradually
improving single-family home sales this year, recent economic reports
that have shown some weakening in the pace of recovery likely factored
into the marginal gain," said NAHB Chief Economist David Crowe. "In
addition, builders across the country continue to report that overly
tight lending conditions and inaccurate appraisals are major obstacles
to completing sales at this time."

Derived from a monthly survey that NAHB has been conducting for 25
years, the NAHB/Wells Fargo Housing Market Index gauges builder
perceptions of current single-family home sales and sales expectations
for the next six months as "good," "fair" or "poor." The survey also
asks builders to rate traffic of prospective buyers as "high to very
high," "average" or "low to very low." Scores from each component are
then used to calculate a seasonally adjusted index where any number over
50 indicates that more builders view conditions as good than poor. 

In June, the HMI component measuring current sales conditions rose two
points to 32, which is its highest level since April of 2007. Meanwhile,
the components measuring sales expectations in the next six months and
traffic of prospective buyers held unchanged at 34 and 23, respectively.

Regionally, the HMI results were mixed in June, with two areas of the
country posting gains and two posting declines. The Midwest registered a
five-point gain to 31 and the West registered a four-point gain to 33,
while the Northeast and South each posted two-point declines, to 29 and
26, respectively. 

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the
product of NAHB Economics, and is not seen or influenced by any outside
party prior to being released to the public. HMI tables can be found at
www.nahb.org/hmi. More information on housing statistics is also
available at www.housingeconomics.com.   
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