Builder confidence grew one point in February to a level of 84 on the National Association of Home Builders/Wells Fargo Housing Market Index.
Low mortgage rates and strong buyer demand managed to offset supply chain challenges and a surge in lumber prices in February, according to NAHB.
"Lumber prices have been steadily rising this year and hit a record high in mid-February, adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects at a time when inventories are already at all-time lows," NAHB Chairman Chuck Fowke stated. "Builders remain very focused on regulatory and other policy issues that could price out households seeking new homes in a tight market this year."
NAHB said it expects “some cooling” in growth rates for the residential construction market in 2021 due to cost factors, supply chain issues and regulatory risks.
