Homebuilder confidence in the U.S. came in flat in the month of April, the National Association of Home Builders revealed in a report released on Monday.

The report said the NAHB/Wells Fargo Housing Market Index came in at 51 in April, unchanged from March and in line with economist estimates.

The unchanged reading halts a four-month advance by the housing market index, which reached its highest level since last July in the previous month.

“April’s flat reading suggests potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed,” said NAHB Chief Economist Robert Dietz.

He added, “With the markets now adjusting to rates being somewhat higher due to recent inflation readings, we still anticipate the Federal Reserve will announce future rate cuts later this year, and that mortgage rates will moderate in the second half of 2024.”

The housing market index came in unchanged compared to the previous month amid a mixed performance by the three component indices.

While the index charting current sales conditions and the component gauging traffic of prospective buyers both inched up by one point to 57 and 35, respectively, the component measuring sales expectations in the next six months fell two points to 60.

On Tuesday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of March.

Housing starts are expected to decrease to an annual rate of 1.480 million in March after spiking to a rate of 1.521 million in February.

Building permits, an indicator of future housing demand, are also expected to slip to a rate of 1.514 million in March after jumping to a rate of 1.518 million in February.