"Their (builders') lowering confidence reflects their limited access to capital and in turn a limited access to lands."
- Stuart Miller, chief executive officer at Lennar Corp.
Homebuilder confidence in the U.S. unexpectedly fell for a third consecutive month in April, subdued by increasing costs for materials and financing restrictions. The NAHB/Well Fargo index of builder confidence declined from 44 in March to 42, the lowest level since October, whereas economists had estimated an index of 45.
"Many builders are expressing frustration over being unable to respond to the rising demand for new homes due to difficulties in obtaining construction credit, overly restrictive mortgage lending rules and construction costs that are increasing at a faster pace than appraised values," said Rick Judson, the Washington-based group's chairman and a builder from Charlotte, North Carolina.
"Their lowering confidence reflects their limited access to capital and in turn a limited access to lands. Late participants in the land market are having difficulty participating in the market recovery," said Stuart Miller, chief executive officer at Lennar Corp.
Another data showed that conditions for New York manufacturers improved somewhat, with the general business conditions index falling to 3.1, but remaining positive for a third straight month.
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