US homebuilder confidence slipped in June as rising mortgage rates cast concerns about the state of the fragile housing market.

The National Association of Homebuilders’ index of homebuilder sentiment fell back to from 16 to 15 this month, dashing economists’ predictions of an uptick. The figure remains 79 per cent below the peak of hopefulness reached in June 2005 when the index rose to 72 but well above January’s record low of 8. A reading of more than 50 indicates “good” conditions.