"At the same time, problems with appraisals and credit availability remain considerable obstacles to completing deals"
- NAHB Chairman Rick Judson
Sentiment among home builders in the world's largest economy slipped to the lowest level in five months, as supply chains concerns and rising costs weighed on enthusiasm. The National Association of Home Builders said Monday that a gauge of home builders' mood dropped to 44 from 46 in February, falling to the lowest since October 2012. Analysts, however, claimed for a gain to 47. Despite climbing strongly in the second part of the previous year, index has now pulled back for two consecutive months. However, even with March's decline, it is 16 points higher than it was a year ago. Despite overall improvement in the housing market, which is considered by the Fed as one of the most important indicators of economic health, index still remains below the 50 level that indicates more builders view market conditions as poor than favourable. The index has not been above 50 since April 2006.
"Although many of our members are reporting increased demand for new homes in their markets, their enthusiasm is being tempered by frustrating bottlenecks in the supply chain for developed lots, along with rising costs for building materials and labor," NAHB Chairman Rick Judson said in a statement.
"At the same time, problems with appraisals and credit availability remain considerable obstacles to completing deals."
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