US NAHB/Wells Fargo Housing Market Index dropped to 79 in March from a downwardly revised 81 in February, the National Association of Home Builders reported on Wednesday. The NAHB noted the index dropped below 80 for the first time since last September as increasing development and construction costs have taken a toll on builder confidence even as buyer demand remains relatively solid. The bigger than expected decrease by the index came as the gauge measuring sales expectations in the next six months plunged to 70 in March from 80 in February.
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