Home Breadcrumb caret Economy Breadcrumb caret Economic Indicators U.S. homebuilder confidence fading on trade war threat The threat of a trade war with Canada has taken a toll By The Associated Press | June 18, 2018 | Last updated on June 18, 2018 2 min read The threat of a trade war with Canada has taken a toll on the confidence of U.S. homebuilders, according to an index released Monday. The National Association of Home Builders/Wells Fargo builder sentiment index fell two points to 68 in June. A reading of 70 in May temporarily snapped a four-month slide. Any reading above 50 indicates more builders see sales conditions as good rather than poor. The index has remained above 60 since September 2016. Read: Snapshot: U.S. economic data Builders’ view of current sales conditions fell one point, to 75, this month. The outlook for sales over the next six months fell one point to 76. A measure of buyer traffic fell one point, to 50. “Builders are optimistic about housing market conditions as consumer demand continues to grow,” says NAHB chairman Randy Noel. “However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability.” Read: China responds swiftly to U.S. tariffs on $50B in imports The organization said higher lumber prices have added nearly US$9,000 to the price of a new single-family home since January 2017. Read: Home prices stabilize in May, says National Bank The overall housing market remains tight, with prices of existing homes rising as demand remains strong and listings decrease. Mortgage rates are also steadily increasing, making purchases even more difficult for first-time homebuyers. Sales of new U.S. homes fell 1.5% in April, according to The Commerce Department. The National Association of Realtors reported a 2.5% drop in existing home sales in April. Read: Why investing in REITs requires caution The Associated Press The Associated Press is an American not-for-profit news agency headquartered in New York City and founded in 1846. Save Stroke 1 Print Group 8 Share LI logo