After an unexpected spike in December, builder confidence in the market for newly-built, single-family homes fell a point to 56 in January, according to the National Association of Home Builders Housing Market Index. The index – derived from a monthly survey conducted for the past 25 years – scores builders’ perception of the current market on a scale where any number above 50 indicates more builders view conditions as good than poor. Rick Judson, NAHB’s chairman, said January’s results show that confidence is holding at a solid level. According to Judson, the fact that many markets are showing improvement bodes well for future sales of new homes. Still, all three index components suffered declines in January. The index gauging current sales fell one point to 62, while future sales dropped two and buyer traffic slipped three points. Regionally, the three-month moving averages found the Northeast and West both up four points. The South was unchanged at 56 and the Midwest fell a point to 58. NAHB chief economist David Crowe believes rising home prices, historically low mortgage rates, and significant pent-up demand will continue driving the recovery in the year ahead. More here.