US Homebuilder Sentiment Barely Rises, Restrained by High Costs

US homebuilders’ confidence barely rose this month, restrained by persistent affordability concerns and elevated construction costs.

An index of market conditions from the National Association of Home Builders and Wells Fargo increased one point to 38 in March, according to data released Monday, after the prior month was upwardly revised by one point. A value below 50 means more builders see conditions as poor than good.

Contractors are facing ongoing challenges as they enter the critical spring selling season, including elevated mortgage rates, labor constraints and high construction costs. To support sales, many builders have slashed their prices and bought ...