The NAHB Housing Market Index for May dropped from 56 to 54. I was looking for an increase to 57. The index’s components were mixed in May with the component charting sales expectations over the next six months rising one point to 64, the index measuring buyer traffic dropping a single point to 39, and the component gauging current sales conditions down two points to 59.
Despite this month’s slight dip, builder confidence in the new home market remains above the 50-point benchmark. Clearly, the data suggests that consumers are still exhibiting caution, and want to be on more stable financial footing before purchasing a home. That said, the HMI component measuring future sales expectations has been tracking upward all year, mortgage rates remain low, and house prices are still relatively affordable. I believe that these factors should spur the release of pent-up demand moving forward.
U.S. Housing Starts rose…
View original post 1,242 more words