The National Association of Home Builders/Wells Fargo Housing Market Index rose 2 points to 60 in August, after falling 2 points in July. Over the past seven months the index has held within a range of 58 and 60 points.
“Builder confidence remains solid in the aftermath of weak GDP reports that were offset by positive job growth in July,” said NAHB Chief Economist Robert Dietz. “Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year.”
Two of the three index components posted gains in August. The component measuring sales conditions increased 2 points to 65, while the component measuring sales expectations increased 1 point to 67. The buyer traffic component fell 1 point to 44.
The three-month moving averages varied. The Northeast and South both rose 2 points to 41 and 63 respectively. The West was unchanged at 69, while the Midwest fell 2 points to 55.
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