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- U.S. builder confidence declines in June
U.S. builder confidence declines in June
The National
Association of Homebuilders (NAHB) announced on Monday its housing market index
(HMI) fell two points to 66 in June.
Economists forecast
the HMI to stay at 66.
A reading over
50 indicates more builders view conditions as good than poor.
All three HMI
components were lower this month. The indicator gauging current sales
conditions dropped one point to 71, the measure charting sales expectations in
the next six months fell two points to 70 and the component measuring traffic
of prospective buyers decreased one point to 48.
NAHB Chairman
Greg Ugalde said: “While demand for single-family homes remains sound, builders
continue to report rising development and construction costs, with some additional
concerns over trade issues.”
Meanwhile, NAHB
Chief Economist Robert Dietz noted: “Despite lower mortgage rates, home prices
remain somewhat high relative to incomes, which is particularly challenging for
entry-level buyers. And while new home sales picked up in March and April,
builders continue to grapple with excessive regulations, a shortage of lots and
lack of skilled labor that are hurting affordability and depressing supply.”
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