Home Builders Index Drops Slightly, But Still Optimistic

Home builders remain extremely optimistic but just a little less so in March, at an index score of 70 which is at Econoday's low estimate. The present sales component held steady at 77 though future sales slipped 2 points to 78 with traffic, which has been the swing component in recent months, down 3 points but still over 50 at a constructive 51. Composite data show all regions over 50 led by the West at 78 with the Northeast the lowest but still very respectable at 56. Today's data point to continued though perhaps to easing strength for the new home market, which are the expectations for tomorrow's housing starts and permits report.