home builder confidence continues decline...

Higher interest rates and declining demand from investors continue to push the confidence of the nation's home builders to lower levels, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

The seasonally adjusted HMI stands at 50 this month, down four points from March's revised reading of 54.

An HMI above 50 indicates that more builders view sales conditions as good versus poor.All three HMI components declined in April.

The component measuring current single-family sales declined five points to 54, while the components gauging future sales and buyer traffic decreased to 58 and 39, respectively.

Regionally, home builders in the West maintain the greatest confidence in market conditions, with an overall seasonally adjusted HMI of 70.

**taken from the california association of realtors bulletin, dated april 20, 2006.