Homebuilder sentiment rebounds after year-long slump.

Builder confidence in the market for newly built single-family homes rose 5 points in May to 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builders are benefiting from a very lean existing home market, with new listings in April down nearly 22% YoY, and are drawing more buyers by offering incentives, like buying down mortgage rates. However, builders continue to face challenges to meet the growing demand due to supply shortages of building materials and tightening credit conditions for residential real estate development and construction.