Falling mortgage rates pushed home builder sentiment up one point in August, but they haven’t spurred new construction, CNBC reports.
Builder confidence for single-family homes hit 66 in August, 1 point higher than it was in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). That is down from 67 in August 2018, however. Sentiment has swayed between 64 and 66 for the past four months. Anything above 50 is considered positive.
“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots,” said NAHB Chairman Greg Ugalde, a homebuilder from Torrington, Connecticut.
Over the first six months of this year, 417,453 single-family home construction permits were issued, down 6.1% from June 2018′s level of 444,600, according to the U.S. Census.