A sharp jump in homebuilder confidence last month was short-lived.
A monthly sentiment index retreated 2 points in January, and December's seven-point jump was revised down by one. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) now stands at 67. Fifty is the line between positive and negative sentiment. The index was at 61 in January of 2016.
Despite the January drop, some builders say there are still reasons to be bullish. "Builders begin the year optimistic that a new Congress and administration will help create a better climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process," said NAHB Chairman Granger MacDonald, a homebuilder and developer from Kerrville, Texas.