Courtesy of John Nyaradi.
National Association of Home Builders Index sinks to three month low in September and misses expectations.
by Wall Street Sector Selector Staff
The NAHB report today painted an ongoing dismal picture of the U.S. housing industry as its index slipped to 14 from a previously reported 15 and touched a three month low.
The report mentioned that home builders continue to face problems with competition from foreclosed homes, tough credit conditions and poor consumer sentiment and all three internal components declined from previous measures. (sales conditions, sales expectations in the next six months, prospective buyer traffic)
Two ETFs focused on the homebuilder sector, (XHB) and (ITB) declined today.
A reading of “50″ is considered to indicate “good” conditions and so clearly this vitally important sector has a long way to go on the climb back to positive territory.
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