The NAHB housing market index (HMI), a gauge of homebuilder sentiment, fell to 45 in May.
This missed expectations for a rise to 49. A reading over 50 shows that more builders view conditions as good than poor.
April’s reading was also revised down to 46, from 47.
“Builders are waiting for consumers to feel more secure about their financial situation,” NAHB chief economist David Crowe said in a press release.
“Once job growth becomes more consistent, consumers will return to the market in larger numbers and that will boost builder confidence.” The severe cold has weighed on homebuilder sentiment in recent months as well.
Homebuilders expect sales to pick up in coming months. The HMI component gauging sales expectations in the next six months climbed one point to 57.