Home builder confidence tumbles for third straight month

Builders of single-family homes are feeling less confidence these days as they deal with rising material costs and a shrinking number of developed lots, CNBC reported.

A monthly industry index by the National Association of Home Builders shows that confidence fell two points — the third consecutive monthly decline after steady gains throughout much of last year.

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“Supply chains for building materials, developed lots and skilled workers will take some time to reestablish themselves following the recession, and in the meantime builders are feeling squeezed by higher costs and limited availability issues,” David Crow, the chief economist for the NAHB, told CNBC.

The NAHB’s monthly confidence index stands at 42, up from 24 in April 2012, CNBC said. The marker between positive and negative is 50. [CNBC] –Hayley Kaplan