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US builder morale declines in June as construction costs surge

US builder morale declines in June as construction costs surge

Mubasher: US home builder sentiment declined in June, despite demand for newly-built single-family houses remained solid, data showed on Monday.

The National Association of Home Builders’ (NAHB) monthly confidence index, which gauges the newly-built single family home market outlook, fell by two points to 64 in June.

“Builders continue to report rising development and construction costs, with some additional concerns over trade issues,” NAHB Chairman Greg Ugalde said.

The current sales conditions index, which is one of the components of the overall NAHB index, shed one point to 71, while the gauge of the expected sales in the coming six months went down by two points to 70 and the buyer traffic tracker one point to 48.

“Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers,” NAHB senior economist Robert Dietz said.