Builder confidence held steady at a level of 68 in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB Chairman Randy Noel credited the stable confidence level to continuing consumer demand for single-family homes, steady job growth and income gains in parts of the country.
While the latest confidence number is still considered to be at a “healthy” level, rising construction material costs continue to burden builders, said NAHB Chief Economist Robert Dietz.
“Builders need to manage these cost increases as they strive to provide competitively priced homes, especially as more first-time home buyers enter the housing market,” Dietz said in a statement.
The monthly NAHB survey measures builder perceptions of current single-family home sales and expectations for the next six months. Any level over 50 indicates builders view conditions as more positive than negative.