The NAHB housing market index climbed to 47 in March, from 46 the previous month.
This missed expectations for a rise to 50.
The HMI is a gauge of homebuilder confidence.
“The March HMI mirrors last month’s sentiment, as builders continued to be affected by poor weather and difficulties in finding lots and labour,” NAHB Chairman Kevin Kelly, said in a press release.
The fall in February was the biggest decline on record. The severe winter and concerns about the cost and availability of labour and lots were blamed for the decline in homebuilder confidence last month.
The three month moving averages for regional HMI fell across all regions. The three HMI components were a mixed bag in March.
- The component gauging current sales conditions climbed one point to 52.
- The component gauging sales expectations in the next six months declined one point to 53.
- The component measuring buyer traffic rose two points to 33.
A reading over 50 shows that more builders view conditions as good than poor.