WASHINGTON, May 15 (UPI) -- Builders' confidence in the new single-family homes market rose in May, a trade group said Wednesday.
The National Association of Home Builders said their Home Builders/Wells Fargo Housing Market Index for builder confidence added three points to reach 44 over a downwardly revised 41 point reading for April.
"While industry supply chains will take time to re-establish themselves following recession-related cutbacks, builders' views of current sales conditions have improved and expectations for the future remain quite strong as consumers head back to the market in force," said NAHB Chief Economist David Crowe in a statement.
"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies," said NAHB Chairman Rick Judson.
"This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor," he said.