Homebuilder sentiment slips in February

U.S. homebuilders are feeling slightly less confident about their sales prospects ahead of the spring home-selling season, though they remain positive overall that the housing market will continue to improve this year.

The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday slipped to 58 this month, down three points from a revised reading of 61 in January.

The index had been hovering in the low 60s since June. Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders’ view of current sales conditions and a measure of traffic by prospective buyers declined. Their outlook for sales over the next six months edged higher.

The downbeat readings partly reflect builder concerns over rising costs for and availability of labor and ready-to-build land.