Builder confidence in the market for new single-family homes rose one point to 47 in April on the National Association of Home Builders/Wells Fargo Housing Market Index, improving on a downwardly revised March reading of 46. Scores less than 50 indicate more builders see conditions as poor than positive.

The Housing Market Index (HMI) component that gauges current sales conditions in April held steady at 51, while the gauge of prospective buyer traffic was also unchanged at 32. The component measuring expectations for future sales rose four points to 57.

"Builder confidence has been in a holding pattern the past three months," said NAHB chairman Kevin Kelly. "Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead."

"Job growth is proceeding at a solid pace, mortgage interest rates remain historically low and home prices are affordable," said NAHB chief economist David Crowe. "While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and the fact that builders in many markets are facing a limited availability of lots and labor."

The HMI three-month moving average was down in all four regions. The West fell nine points to 51
and the Midwest posted a four-point decline to 49, while the Northeast and South fell two points to
33 and 47, respectively.