Similar to the pace of construction, the number of home builders who are doing remodeling work has declined considerably in recent months due to economic conditions, a new report indicates.
The National Association of Home Builders Remodeling Market Index dropped to 41.7 between the months of July and September, down from 43.9 in the second quarter. Any RMI number that's lower than 50 indicates remodelers are performing fewer remodeling jobs.
All three components that comprise the RMI lowered in the third quarter, NAHB reports, which includes major additions, minor additions, maintenance and repair work.
"The current economic instability continues to affect consumer confidence, therefore we have seen a drop off in remodeling activity for the last two quarters," said David Crowe, NAHB's chief economist. "In order for the remodeling market to pick up, homeowners need to have access to less restrictive lending requirements and see their economic future stabilizing."
The chances of a lender approving a mortgage or home equity loan request improves if the borrower's credit report is in good standing. Consumers considering refurbishing their home may want to review their credit histories to ensure that they are accurate.