The index fell for the second month in a row, affected by high oil prices and supply problems
Current sales indicators are at an 11-month low, while future sales expectations are higher.
American builders' confidence fell back to an 11-month low in JulyAffected by rising raw material prices and persistent supply shortages.
National Association of Residential Builders / Wells Fargo announced on MondayData displayBuilders' confidence fell for the second month in a row, to 80% from 81 in June. The median expected by economists is that the index will be the same as last month.
The data highlights how rising raw material costs and supply chain disruptions are preventing builders from quickly replenishing inventories of available homes. Low mortgage rates spurred a surge in demand from buyers, but demand for housing outstripped supply, forcing prices to soar.
The report also showed that indicators of current sales and potential buyer flows fell to their lowest level since August last year. However, sales are expected to climb 2 points over the next six months.