WASHINGTON—Confidence among U.S. single-family homebuilders fell to a seven-month low in April as surging mortgage rates and snarled supply chains boosted housing costs, shutting out some first-time buyers from the market, a survey showed on Monday.
The National Association of Home Builders/Wells Fargo Housing Market index dropped two points to 77 this month. The fourth straight monthly decline pushed the index to its lowest level since last September. A reading above 50 indicates that more builders view conditions as good rather than poor.
Despite record low housing inventory, shortages as well as the high cost of building materials such as framing lumber are making it difficult for builders to ramp up production. According to government data, the backlog of houses approved for construction but yet to be started hit an all-time high in February.
…