The most recent Housing Market Index from the National Association of Home Builders found builders less optimistic about the market for newly built single-family homes than they were in September. The index – which measures builders’ confidence on a scale where any number above 50 indicates more builders view conditions as good than poor – fell five points to a reading of 54 in October. David Crowe, NAHB’s chief economist, said the decline wasn’t surprising. The index was at a nine-year high in September, making the drop somewhat expected. But, according to Crowe, builders are still positive about the housing market and the combination of historically low mortgage rates, steady job gains, and significant pent up demand all point to continued growth. In October, however, all three components of the index registered losses, including current sales conditions, future sales, and traffic of prospective buyers. Regionally, three-month moving averages show the Northeast and Midwest flat, the West down a point, and the South up two points. More here.