Home builder sentiment improves despite uncertain outlook and rising costs.

Home builder sentiment in the US rose for the third consecutive month in March, according to the National Association of Home Builders/Wells Fargo's gauge of builder sentiment. The index increased by two points to 44, beating analysts' expectations of 40. However, readings under 50 indicate that a larger proportion of builders see conditions as "poor" than those who see them as "good". Builders continue to report strong pent-up demand, but are dealing with high construction costs and material supply chain disruptions. The cost and availability of housing inventory remains a critical constraint for prospective home buyers.