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Homebuilder sentiment stays unchanged for a 4th straight month

May 16, 2016, 19:30 IST

Builder sentiement held steady in May at 58 for a fourth straight month, according to the Housing Market Index from the National Association of Homebuilders and Wells Fargo.

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Economists had forecast that the index climbed to 59, according to Bloomberg.

That level shows that sentiment is still in positive territory. "However, builders are facing an increasing number of regulations and lot supply constraints," said NAHB chief economist Robert Dietz in the release.

Dietz said last month that the busy spring homebuying season should boost market activity. In Monday's report for May, the index gauging sales expectations rose three points, while those measuring current sales conditions and buyer traffic held steady.

"Job creation, low mortgage interest rates and pent-up demand will also spur growth in the single-family housing sector moving forward," Dietz said.

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