WASHINGTON — The latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) remained essentially unchanged at 40.8 in the third quarter, compared to 40.7 in the second quarter. An RMI below 50 indicates that more remodelers report that market activity is declining than report that it is increasing. The RMI has been running below 50 since the final quarter of 2005.
In the third quarter, the RMI component measuring current market conditions climbed to 43.4 from 42.6 in the previous quarter. The RMI component measuring future indicators of remodeling business declined marginally, to 38.1 from 38.9 in the last quarter.
"Consumers remain cautious about spending due to uncertainty in the economy high unemployment, and scarce credit," said NAHB Remodelers Chair Donna Shirey, CGR, CAPS, CGP, a remodeler from Issaquah, WA. "Homeowners may be looking at remodeling but they are scared to take the leap."
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