Sentiment among U.S. homebuilders held steady in March, sustaining a rebound from a recent three-year low on improvement in sales and a brighter outlook for the next six months.

U.S. new-home construction rebounded in November to the best pace since August while permits rose to a seven-month high, a sign homebuilding is potentially stabilizing even as higher prices and borrowing costs pose headwinds.

Confidence among U.S. homebuilders plummeted by the most since 2014 as the highest borrowing costs in eight years restrained demand, adding to signs of a cooling housing market that will weigh on the Federal Reserve’s debate over how far to raise interest rates.