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The National Association of Home Builders warned on Wednesday that soaring inflation and higher mortgage rates are slowing home sales, with CEO Jerry Howard calling the combination a “perfect storm.”

Howard told “Varney & Co.” on Wednesday that the cost of capital has increased for the consumers and builders alike. He noted that the “cost of labor remains high” as does the “availability of labor.”

“The cost of building materials has gone up 19% year-over-year,” he noted. 

Howard provided the insight on the same day the National Association of Home Builders posted its sixth straight monthly decline in June for builder confidence in the market for newly-built single-family homes. Howard pointed to the new data, stressing that it is a “sign of a real slowdown.”