Home builder confidence in the U.S. single-family housing sector remained on "solid footing" in March despite dropping to a level of 70 from a downwardly revised reading of 71 in February, according to the latest report from the National Association of Home Builders, or NAHB.
NAHB Chairman Randy Noel said growing consumer demand and confidence in the housing market continued to drive optimism among builders. "However, builders are reporting challenges in finding buildable lots, which could limit their ability to meet this demand," Noel said.
The housing market index component measuring current sales conditions held steady at a reading of 77, while the component gauging sales expectations in the next six months fell 2 points to 78. The measure of buyer traffic decreased 3 points to 51.
In the months ahead, the single-family housing sector is expected to continue making gradual gains due to sound economic fundamentals, according to NAHB chief economist Robert Dietz.
"A strong labor market, rising incomes and a growing economy are boosting demand for home-ownership even as interest rates rise," Dietz said.
