The National Association of Home Builders monthly housing market index took a dramatic dive in February, and gained back one point in March, far below analyst expectations.

The HMI ticked up to 47, the second-lowest it has been since May 2013. NAHB says the primary culprit is the weather.

“Significant weather conditions across most of the country led to a decline in buyer traffic last month,” said NAHB Chairman Kevin Kelly. “Builders also have additional concerns about meeting ongoing and future demand due to a shortage of lots and labor.”

The full report can be viewed here.

The NAHB index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”

Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Details for March once again show serious weakness in traffic, at 33 vs February’s 31. Weakness in traffic points to a lack of first-time buyers and underscores the continued importance of all cash buyers in the housing market.

http://www.housingwire.com/articles/29324-nahb-housing-index-for-march-at-second-lowest-in-10-months