U.S. Homebuilder Sentiment Inches up to Eight-month High in December

U.S. homebuilder sentiment edged up to an eight-month high in December, but activity remained constrained by rising construction costs because of tariffs on imports.

The National Association of Home Builders/Wells Fargo Housing Market index climbed one point to 39 this month, the highest reading since April. It, however, stayed below the 50 break-even point for the 20th consecutive month, with the NAHB also citing economic uncertainty and potential buyers sidelined by affordability concerns as drags. The rise in the index was in line with economists' expectations.

"Market conditions remain challenging, with two-thirds of builders reporting they are offering incentives to move buyers off the fence," said NAHB chairman Buddy Hughes. "Meanwhile, builders are contending with rising material and labor prices, as tariffs are having serious repercussions on construction costs."

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