The National Association of Home Builders/Wells Fargo Housing Market Index released Tuesday a report showing a decline in home builders confidence.
The home builders confidence index got 1 point less in February to 46 from January 47. This is the first weakening since April, due to strict lending standards and fiscal and economic uncertainty.
NAHB also cited rising materials costs and limited labor availability in certain markets as a reason of lower confidense for the 1st time in 10 month.
Meanwhile, sales expectations slightly gained. Despite February's decline, sentiment is up 64% from a year earlier, with builders encouraged by a strengthening housing market that is benefitting from persistently low interest rates and pent-up demand.
The home builders confidence index remaining below 50 shows that the sales conditions are poor. The level remained under 50 since 2006.