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Home builder confidence remained flat in November from a downwardly revised level of 54, according to data from the National Association of Home Builders/Wells Fargo Housing Market Index released on Monday.
Analysts polled by Thomson Reuters had expected the index to increase to 56.
Fifty is the line between positive and negative. This marks the sixth consecutive month that more builders viewed market conditions as good than poor.
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"Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road," said NAHB Chairman Rick Judson in the release.
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Judson noted that builders continue to face challenges stemming from increased construction costs and low appraisals.
Of the index's three components, two dropped. The future sales expectations component dropped one point to 60 while the component gauging prospective buyer traffic dropped one point to 42. The index that gauges current sales conditions held steady at 58.
"The fact that builder confidence remains above 50 is an encouragingsign, considering the unresolved debt and federal budget issues cause buildersand consumers to remain on the sideline."said NAHB Chief Economist David Crowe in the release.
The index's three-month moving average remain unchanged in the South and West regions while the Northeast rose one point to 39 and the Midwest fell three points to 60.
—By CNBC's Katie Little