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Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI). It showed that assessments of housing activity went flat in November, with the composite HMI index remaining at 54 while the "buyer traffic" index slumped to a level of 42. It's important to note that while the last few months results have suggested a pullback of sorts for homebuilder activity, the latest trend has been very strong and consistent with the overall recovery seen in the nation's housing markets.

Looking at the data, it is fairly clear that the last year of results indicate a major change in builder sentiment likely coming as a result of improvements in confidence given the notable rise in buyer traffic, reduced inventory and a more balanced monthly supply.

Source: Homebuilder Blues: NAHB/Wells Fargo Homebuilder Ratings - November 2013