U.S. home-builder confidence in the market for single family homes rose in May amid rising home prices despite increasing building materials costs, an index showed on Wednesday.
The National Association of Home Builders/Wells Fargo Housing Market index edged up three points to 44, from a downwardly revised 41 in April. Economists in a Reuters survey were expecting a reading of 43. Any number over 50 indicates that more builders view conditions as good than poor.
"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies," said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor."