Builder sentiment weaker than hoped

|By:, SA News Editor

The iShares DJ U.S. Home Construction ETF (ITB +0.1%) gives back its early gain after a weaker-than-expected report from the National Association of Home Builders shows builder sentiment higher by a point to 47, but falling well short of expectations for 50.

Toss the weather into continuing difficulties finding labor and lots, and higher material costs as reasons, says NAHB Chairman (and builder) Kevin Kelly.

Index components: Current sales conditions up a point to 52. Buyer traffic up two points to 33. Expectations for the next six months down a point to 53. It's a diffusion index - anything above 50 means more view conditions as good than poor.

The more home improvement and supply-related XHB +0.5%.