Builder Confidence Edges Higher as Affordability Challenges Persist

Builder confidence in newly built single-family homes rose three points to 37 in May despite challenges from rising mortgage rates, economic uncertainty, and high land, labor, and construction costs. Price reductions by builders decreased to 32%, with an average cut of 6%. Sales incentives remained above 60% for the 14th month. Wage growth for residential building workers slowed, with real wages declining 1.2% year over year.