A reading of more than 50 indicates more builders view market conditions as favorable than poor. Readings from June to January were higher than 50—before snapping below that mark in February.
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"Job growth is proceeding at a solid pace, mortgage interest rates remain historically low and home prices are affordable," said NAHB Chief Economist David Crowe. "While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor."
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The survey's results came amid a drop in mortgage rates from earlier this month, according to the latest data available from Freddie Mac.