Dive Brief:

• The National Association of Home Builders/Wells Fargo Housing Market Index unexpectedly dipped three points in November to 62 after the upwardly revised October results.
• The NAHB said the drop was the result of the market leveling out after an "unusually high" confidence mark in October. This month's reading is "more in line with the consistent, modest growth that we have seen throughout the year," NAHB Chief Economist David Crowe said.
• Economists had predicted builder confidence would remain steady in November after reaching a 10-year-high in October, according to Business Insider. 

Dive Insight:

The NAHB cited lasting concerns regarding access to available lots and skilled labor as primary drivers of the November dip in optimism. However, the association does not expect this month's disappointing results to knock the housing market recovery off its steady course, and The Wall Street Journal noted the industry seems to be "sustaining momentum."

Crowe said, "A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016."

And although the index slipped in November, it is still well above 50 — which indicates most builders are optimistic about conditions in the single-family home market.

This if the first in a string of housing market reports that could have an impact on the Fed's coming interest rate hike decision during its December meeting. Later this week and next week, reports will reveal October data for housing starts, as well as new home sales, existing home sales and pending sales.