US: Homebuilder confidence declines slightly in September - Wells Fargo

Analysts from Wells Fargo explained that the NAHB/Wells Fargo Housing Market Index (HMI) fell 3 points to 64 in September, reversing August’s gain. According to them Hurricanes Harvey and Irma had an impact. 

Key Quotes: 

“Homebuilder confidence fell slightly in September, as Hurricanes Harvey and Irma impacted the two largest states for new single-family homebuilding. Damages from the hurricanes introduce an element of uncertainty into the housing outlook and will likely bolster labor and material costs.”

“The drop in the HMI may signal some moderation in new home sales and homebuilding during the latter part of 2017. 

“Harvey and Irma caused widespread damage in Texas and Florida, which may interrupt activity in states that combined to account for 25 percent of the nation’s single-family permits.”