US home builders' confidence falls again, dropping to an annual low.

The confidence of American home builders has fallen for the second consecutive month, dropping to its lowest level this year, due to high borrowing costs and rising material and land prices. Data jointly released by the National Association of Home Builders and Wells Fargo on Thursday showed that the July Market Conditions Index dropped 2 points to 34. Economists had expected it to be 35. A reading below 50 means that more builders view the market as poor rather than good. The index has been below 40 for 15 consecutive months, the longest since 2012. NAHB chief economist Robert Dietz stated in a release, "Affordability remains a key issue for the residential construction industry. Persistently high mortgage rates, soaring land costs, rising material prices, and continued shortages of skilled labor continue to impact the market." The confidence index consists of three components: the current sales index, the sales expectations index, and the traffic index. All three sub-indices saw decreases in July.