US homebuilder sentiment weakens, but solid

U.S. homebuilder sentiment weakened somewhat at the beginning of 2014, although most developers expected the housing recovery to continue, the National Association of Home Builders (NAHB) reported Thursday.The NAHB housing-market index fell to 56 in January from 57 the previous month. Any reading above 50 indicates more builders view conditions as good rather than poor. The index, seen as a measure of future housing construction, has been above 50 for eight consecutive months.“Following an unexpected jump last month, builder confidence has essentially leveled out and is holding at a solid level,” NAHB chairman Rick Judson said in a statement. “Many markets continue to improve, and this bodes well for future home sales.”All three NAHB survey components declined in January. The measure on homebuilders’ view of current sales conditions fell to 62 from 63 in December. The index on expectations of future sales fell to 60 from 62, while the measure on traffic of prospective buyers declined to 40 from 43.“Rising home prices, historically low mortgage rates, and significant pent-up demand will drive a continuing, gradual recovery in the year ahead,” said NAHB chief economist David Crowe. “However, the pace of the recovery could be stronger.”