Builder confidence in the United States for newly-built single-family homes fell in May, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Thursday.
The Housing Market Index (HMI) landed at 34, down from the previous month's reading of 40. The current sales conditions index declined by eight points to 37, the sales expectations index was down by one point to 42 and the traffic of prospective buyers decreased by two points to 23.
"The spring home buying season has gotten off to a slow start as persistent elevated interest rates, policy uncertainty and building material cost factors hurt builder sentiment in May," NAHB Chairman Buddy Hughes stated. "However, the overwhelming majority of survey responses came before the tariff reduction announcement with China. Builders expect future trade negotiations and progress on tax policy will help stabilize the economic outlook and strengthen housing demand," he added.
