Builder Confidence Grows One Point in July

Builder confidence increased one point in July to a level of 65 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

The steady confidence level is due to a solid demand for single-family homes, according to the National Association of Home Builders (NAHB). However, labor shortages and rising construction costs continue to add challenges for home builders, NAHB said.

“Even as builders try to rein in costs, home prices continue to outpace incomes,” NAHB Chief Economist Robert Dietz added in a statement.

HMI levels above 50 indicate positive conditions in the housing market, according to NAHB.