American homebuilders' confidence declined for the second month in a row, to its lowest level since this year, hampered by high borrowing costs and rising material and land prices. The market condition index fell 2 points to 34 in July, according to data released jointly by the National Association of Home Builders and Wells Fargo on Thursday. Economists had expected 35. The index below 50 means that there are more builders who think the market is in poor condition than those that think it is in good condition. The index has been below 40 for 15 consecutive months, the longest since 2012. NAHB chief economist Robert Dietz said in a statement: “Affordability remains a top challenge facing the residential construction industry. “High mortgage interest rates, high land costs, rising prices for construction materials, and a continued shortage of skilled labor continue to have an impact on the market.” The confidence index has three parts: current sales indicators, expected sales indicators, and customer flow indicators. All three sub-indices declined in July.

American homebuilders' confidence declined for the second month in a row, to its lowest level since this year, hampered by high borrowing costs and rising material and land prices. The market condition index fell 2 points to 34 in July, according to data released jointly by the National Association of Home Builders and Wells Fargo on Thursday. Economists had expected 35. The index below 50 means that there are more builders who think the market is in poor condition than those that think it is in good condition. The index has been below 40 for 15 consecutive months, the longest since 2012. NAHB chief economist Robert Dietz said in a statement: “Affordability remains a top challenge facing the residential construction industry. “High mortgage interest rates, high land costs, rising prices for construction materials, and a continued shortage of skilled labor continue to have an impact on the market.” The confidence index has three parts: current sales indicators, expected sales indicators, and customer flow indicators. All three sub-indices declined in July.