Builder confidence in the housing market dropped four points in December on the National Association of Home Builders/Wells Fargo Housing Market Index.
At a level of 56, it’s the lowest confidence level reported by builders since May 2015, according to NAHB.
“We are hearing from builders that consumer demand exists, but that customers are hesitating to make a purchase because of rising home costs,” NAHB Chairman Randy Noel said in a statement. “However, recent declines in mortgage interest rates should help move the market forward in early 2019.”
It’s the second straight month of builder confidence decline, following November’s eight-point drop.
Index levels above 50 are considered indicators of generally positive housing market conditions for builders.
