Builder confidence holds up.

Builder confidence in the market for newly built single-family homes barely budged in July, edging down two points from an upwardly revised reading in June to a level that matches the strong index average for the year as a whole, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.

"Builders have every reason to remain confident in the single-family marketplace," said NAHB President Dave Wilson.

"While mortgage rates have risen slightly in recent weeks, financing conditions remain very favorable to families considering homeownership, and demand still outpaces the supply of new homes in many markets."

"July's HMI reading of 70 is right in line with the elevated index average for the year to date, and upbeat builder attitudes point toward continuation of strong sales and starts of single-family homes in the months ahead," said NAHB Chief Economist David Seiders.

"Builders are, however, concerned about lot shortages and the high cost of land for development, especially in parts of the Northeast and West. Meanwhile, the relatively weak job market situation in the Midwest has had an impact on builder confidence in that part the country."