Home builder sentiment backs down in November

The National Association of Home Builders/Wells Fargo Market Index of U.S. home builder sentiment took an unexpected turn for the worse in November.

Builder confidence is now down three points at 62 on the index, owing to land and labor shortages.

Additionally, October's figure was upwardly revised by one point.

"The November report is pullback from an unusually high October, and is more in line with the consistent, modest growth that we have seen throughout the year," said NAHB chief economist David Crowe. "A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016."

While a reading above 50 on the index is considered positive, it has stood above 60 for the past six straight months. A year ago, it was 58.

“Even with this month’s drop, builder confidence has remained in the 60s for six straight months — a sign that the single-family housing market is making long-term headway,” said NAHB chairman Tom Woods, a home builder from Blue Springs, Mo. “However, our members continue to voice concerns about the availability of lots and labor.”