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.”