Homebuilders Confidence At Lowest Readings Since September 2017

Confidence among the nation's home builders remains at a yearlong low, at 67 in today's report for September vs 67 in August. These are the lowest readings since September last year.

Traffic is the weak link in this report, holding at 49 which is the softest showing since October last year. Lack of affordability and general lack of interest in home buying, especially among first-time buyers, are negative factors for traffic. But sales indications are very solid, up 1 point to 74 for current sales and up 2 points for future sales which are also at 74.

The rise in sales may give a needed boost to forecasts for the new home sales report but the overall lack of punch in this report won't be further boosting expectations for tomorrow's housing starts and permits data where bounce-back strength from recently depressed levels is the expectation.