After jumping to the highest level in nine years last month, confidence among U.S. home builders took a sharp U-turn in October.
While still in the positive range, builder sentiment fell 5 points to a level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index. Fifty is the line between positive and negative on the index. This reverses four straight months of gains.
"We are seeing a return to the mid-50s index level trend established earlier in the summer, which is in line with the gradual pace of the housing recovery," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware. "While there was a dip this month, builders are still positive about the housing market."