WASHINGTON, June 17 (Xinhua) -- U.S. homebuilder sentiment decreased in June as affordability concerns persisted in the U.S. housing market.
The latest housing market index (HMI) dropped 2 points to 64 in June, the National Association of Home Builders (NAHB) said on Monday.
"Sentiment levels have held at a solid range in the low- to mid-60s for the past five months," NAHB reported.
The sub-index which measures current sales conditions dropped 1 point to 71, while the indicator that shows expectations for transactions in the next six months also decreased 2 points to 70. Besides, the sub-index gauging buyer traffic dropped 1 point to 48, said NAHB.
"While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues," said Greg Ugalde, chairman of NAHB.
"Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers," said Robert Dietz, chief economist of NAHB.
"And while new home sales picked up in March and April, builders continue to grapple with excessive regulations, a shortage of lots and lack of skilled labor that are hurting affordability and depressing supply," Dietz added.
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