MNI BRIEF: US Home Builder Confidence Falls Below Expected

Home builder confidence fell again in January as rising material costs and surging Covid-19 case counts weakened affordability and labor supply, the National Association of Home Builders said Wednesday.

The NAHB/Wells Fargo Housing Market Index dipped to 83 in January when financial markets had expected the measure to remain unchanged from December's 86. The index gauging current single-family sales conditions declined to 90 from 92 in December, and the six-month outlook also fell 2 points to 83.

"Despite robust housing demand and low mortgage rates, buyers are facing a dearth of new homes on the market, which is exacerbating affordability problems," NAHB Chairman Chuck Fowke said in a statement. "Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices."