Builders’ confidence in the market for new single-family homes dropped, as the National Association of Home Builders’ housing market index — a monthly gauge of builder sentiment — fell to 13 in June from 16 in May.
Economists predicted a level of 16.
“Builder confidence has waned even further as economic growth has stalled, foreclosures have continued to hit the market, and the cost of building a home has risen,” NAHB chief economist David Crowe said.
“Meanwhile, potential new-home buyers are being constrained by difficulty selling their existing homes, stringent lending requirements, and general uncertainty about the economy,” he added. “Economic growth must pick up in order for housing to gain the momentum it needs to get back on track.”