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Home builders are slightly less confidence about the market for newly built, single-family homes, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which dropped to a 59 level in July from a 60 reading last month.
All three HMI components fell this month: a one point dip for the components measuring current sales expectations and buyer traffic—to 63 and 45, respectively—and a three-point fall for the component measuring sales expectations in the next six months, which is now at 66. However, the three-month moving averages for regional HMI scores were unchanged in the Northeast, Midwest and South at 39, 57 and 61, respectively, while the West upticked one point higher to 69.
NAHB Chief Economist Robert Dietz was not concerned over the lack of increased HMI confidence. “The economic fundamentals are in place for continued slow, steady growth in the housing market,” said Dietz. “Job creation is solid, mortgage rates are at historic lows and household formations are rising. These factors should help to bring more buyers into the market as the year progresses.”