Builder confidence in the market for newly-built single-family homes in February is at 58, a decrease of three points from 61 in January, according to the National Association of Home Builders Housing Market Index.
The decline is partly attributed to the high cost and low availability of lots and labor, said NAHB Chairman Ed Brady in a statement.
Builder confidence consists of three components: The component measuring sales expectations in the next six months increased one point to 65 in February; current sales conditions dropped three points to 65; and buyer traffic decreased five points to 39.
"Builders are reflecting consumers' concerns about recent negative economic trends," said NAHB Chief Economist David Crowe.
However, he added, mortgage rates are low, job gains are steady, household formations are improving and the demand is there—all fundamental for continued housing market growth.
