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U.S. Homebuilder Sentiment Fell in June on Higher Lumber Costs

Contractors work on a new home under construction in Dunlap, Illinois, U.S., on Wednesday, March 30, 2016.

Contractors work on a new home under construction in Dunlap, Illinois, U.S., on Wednesday, March 30, 2016.

Photographer: Daniel Acker

Sentiment among U.S. homebuilders fell in June to match the lowest level this year, reflecting sharply elevated lumber costs, according to a report Monday from the National Association of Home Builders/Wells Fargo.

Tariffs on lumber and other imported materials are making construction more expensive, which in turn limits affordability for prospective buyers, according to the NAHB. Higher lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017, the Washington-based group said. Lumber prices rose to a record in May.