Homebuilder sentiment unexpectedly fell, as the National Association of Homebuilders housing-market index came in at 62.
Economists had estimated that the index for November stayed unchanged month-on-month at 64. The prior month’s print was revised up to a ten-year high of 65.
The index is designed to gauge the current sentiment and six-month outlook of NAHB members on market conditions for new home sales.
Bank of America Merrill Lynch economists had forecast that the index was due for a pullback after reaching a cycle high.
“The index has overshot relative to the official data on new home sales and mortgage applications, so we aren’t surprised at this dip, which we view as a correction rather than the start of a sustained deterioration,” wrote Pantheon Macroeconomics’ Ian Shepherdson to clients.
He included this chart, which shows that the homebuilder index is still consistent with rising new home sales.
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