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Housing Market Index Finds Builders Remain Upbeat in July

“Home sales continue to run hot this summer, and most builders don’t see a slowdown on the horizon,” said NAHB President Bobby Rayburn.

“Long-term mortgage rates subsided back to around 6% during the HMI survey period, and this likely contributed to builders’ optimism,” explained NAHB Chief Economist David Seiders. “Beyond that, the continuing robust rate of home-price appreciation, high level of new household formations and perceptions of an improving economy are also helping drive the market.”

The NAHB/Wells Fargo HMI is derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Home builders are asked to rate current sales of single-family homes, traffic of prospective buyers and their sales expectations for the coming six months.

Any number over 50 on the seasonally adjusted index indicates that more builders view sales conditions as good than poor.

The index’s measure of prospective traffic fell three points from an above-average level in June. Single-family sales remained unchanged, at a solid 73 on the index — up from 69 a year earlier. Sales expectations dropped one point to 73.

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