Builder confidence in the market for newly built single-family homes fell three points in April to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index.
The HMI consists of three components: Current sales conditions in April dropped three points to 74; sales expectations in the next six months fell three points to 75; and buyer traffic edged a point down to 52.
"The fact that the HMI measure of current sales conditions has been over 70 for five consecutive months shows that there is continued demand for new construction," said NAHB Chief Economist Robert Dietz in a statement. "However, builders are facing several challenges, such as hefty regulatory costs and ongoing increases in building material prices."
The three-month moving HMI average in the West and Midwest increased one point to 77 and 68, respectively. The South was unchanged at 68. The Northeast HMI decreased two points to 46.
