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Supply Chain and Inflation Concerns Ding Builder Confidence Index

Supply Chain and Inflation Concerns Ding Builder Confidence Index

Builder confidence stumbled a bit this month, breaking a four-month streak that had pushed moved the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) 8 points higher. The index, which quantifies builder confidence in the market for newly constructed homes, dipped 1 point in January to 83. Robert Dietz, NAHB’s chief economist said higher materials costs and lack of availability are adding weeks to the construction time of a typical single-family home and the aggregate cost of residential construction materials has increased almost 19 percent in the last month. Policymakers need to take action to fix supply chains and obtaining a new softwood lumber agreement with Canada and reducing tariffs would be an excellent place to start, he said. The
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