Home Builder Confidence Dips: Sector Stocks Follow
Home builder stocks took a cue from an industry confidence measure which dipped slightly in December, as measured by a trade group.
Builder confidence in the market for new single-family homes fell one point from November to 57, according to a monthly index issued by National Association of Home Builders.
The measure had gained four points in the previous month, and the group’s economist, David Crowe, said it’s been roughly stable for the past six months.
“As we head into 2015, the housing market should continue to recover at a steady, gradual pace.” Crowe said.
But much of the home building sector was off Monday, apparently on the builder confidence reading.
The big loser appeared to be Hovnanian Enterprises, Inc.
(NYSE: HOV), off Monday nearly 5.6 percent to $4.07 a share. The Red Bank, N.J.-based home builder had rallied last week after posting an 18 percent increase in fourth-quarter revenue.
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