US Homebuilder Sentiment Dips to Five-Month Low on Affordability

US homebuilders’ confidence slipped again this month, bogged down by persistent worries over affordability and high construction costs.

An index of market conditions from the National Association of Home Builders and Wells Fargo edged down in February to 36, the lowest level since September. That fell short of all but one estimate in a Bloomberg survey of economists. A value below 50 means more builders see conditions as poor than good.

“While the majority of builders continue to deploy buyer incentives, including price cuts, many prospective buyers remain on the sidelines,” NAHB Chairman Buddy Hughes, ...