US homebuilder sentiment holds steady in May

U.S. homebuilders' confidence held steady in May for the fourth month in a row, reflecting an overall optimistic outlook for the new-home market even as the pace of sales has slowed recently.

Despite the sluggish start to the year, some economists see the low mortgage rates and improving job market as strong enough to boost sales in the coming months.

"Job creation, low mortgage interest rates and pent-up demand will also spur growth in the single-family housing sector moving forward," said Robert Dietz, the NAHB's chief economist.

A gauge of traffic by prospective buyers held at 44, while a measure of current sales conditions for single-family homes remained unchanged at 63.