(NAHB) The US builder confidence for newly constructed single-family homes dropped two points to 79 in March, marking the fourth straight month of decline.
The decline happens amid an ongoing supply constraint of lumber and other building materials. Expectations of an interest rate increase by the Fed also weighed down on the builder sentiment.
The HMI index that gauges the current sales conditions dropped by three points to 86, while the gauge for sales expectations in the next six months was down by 10 points to 70. The gauge for the traffic of prospective buyers improved by two points to 67.
On a regional basis, the Northeast builder confidence dropped by seven points to 69, while the Midwest was down one point to 72. The South declined by three points to 83, while the West edged higher by one point to 90.
NAHB Chairman Jerry Konter says builders continue to post rising traffic of prospective buyers, with housing inventories running low, although rising costs have dampened the sector’s confidence.
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