Builder confidence in the market for newly built single-family homes edged one point lower in February, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index. The last three monthly readings mark the highest sentiment levels since December 2017.
"Steady job growth, rising wages and low interest rates are fueling demand but builders are still grappling with increasing construction and development costs," says Dean Mon, NAHB chairman.
"At a time when demand is on the rise, regulatory constraints along with a shortage of construction workers and a dearth of lots are hindering the production of affordable housing in local communities across the nation," says Robert Dietz, NAHB chief economist. "And while lower mortgage rates have improved housing affordability in recent months, accelerating price growth due to limited inventory may offset some of that effect."
The HMI index gauging current sales conditions fell one point, the component measuring sales expectations in the next six months was one point lower and the gauge charting traffic of prospective buyers also decreased one point.