WASHINGTON (AP) — U.S. homebuilders' confidence fell in October after four months of gains which had pushed the indicator to the highest point in nine years.
The National Association of Home Builders/Wells Fargo index dropped to a reading of 54 after climbing to 59 in September, the highest level since November 2005, right before the housing bubble burst.
Readings above 50 indicate more builders view sales conditions as good rather than poor.
Analysts said readings in the mid-50s were in line with the current modest pace of recovery in housing. Sales of new homes did jump in August to the fastest pace since May 2008. But activity is still being held back by sluggish wage growth and a price surge that has put homes out of reach for many Americans.