Mubasher: US home builder sentiment stood firm in July, amid workforce shortages, lack of spaces for building and surging construction costs, data showed on Tuesday.

The National Association of Home Builders’ (NAHB) monthly confidence index, which gauges the newly-built single family home market outlook, rose by one point to 65 in July.

“Builders […] continue to grapple with labour shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes,” NAHB Chairman Greg Ugalde said.

The current sales conditions index, which is one of the components of the overall NAHB index, gained one point to 72, while the gauge of the expected sales in the coming six months went up to 71 and the buyer traffic tracker one point to 48.

“The current low mortgage interest rate environment should be getting more buyers off the sidelines, but they remain hesitant due to affordability concerns,” Ugalde said, suggesting that attractive rates should boost new purchases in big metro suburban markets.