US homebuilder sentiment slips for the third month in a row, but overall outlook is positive

U.S. homebuilders are feeling slightly less confident in their sales prospects, even as their overall sales outlook remains favourable.

The National Association of Home Builders/Wells Fargo builder sentiment index slipped this month to 53, down two points from 55 in February. It’s the third monthly decline in a row for the index.

Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders’ view of current sales conditions and traffic by prospective buyers declined. Their outlook for sales over the next six months held steady.

The latest reading is consistent with the NAHB’s forecast for the U.S. housing market to continue to improve at a gradual pace this year.