US homebuilder sentiment dips in February

Improved sentiment among homebuilders in the eastern US failed to offset weakness in the West and Midwest last month, despite which attitudes remained near their most buoyant since 1999.

The National Association of Home Builders/Wells Fargo Housing Market Index slipped from a reading of 75.0 for January to 74.0 in February (consensus: 75.0).

Any print in excess of 50.0 reflects that a majority of builders hold more upbeat views than those who do not.

"Steady job growth, rising wages and low interest rates are fuelling demand, but builders are still grappling with increasing construction and development costs," NAHB Chairman Dean Mon, a builder from New Jersey, said in a statement.

The news came amid borrowing costs for would be buyers that were near three-year lows.

Subindices for current purchases, expected sales and prospective buyer traffic all dipped by one point versus the previous month.

Sentiment in the South remained strongest, while in the Northeast it climbed to a 14-year high, while it fell in the West and Midwest.