US housing market cooled slightly in February

Activity in the US housing market cooled slightly in February, according to one of the most widely-followed surveys for the sector, but an uptrend was expected to resume over the rest of the year.

The National Association of Home Builders/Wells Fargo Housing Market Index retreated from a reading of 61 points for January to 58 in February.

That was slightly below the 61-point reading which economists had penciled in.

However, commenting on the data NAHB chief economist David Crowe said: “historically low mortgage rates, steady job gains, improved household formations and significant pent up demand all point to a gradual upward trend for housing in the year ahead.”

An index of single-family sales retreated from 68 points to 65 and another linked to traffic of prospective buyers fell from 44 points to 39.

A gauge of the number of single family home sales expected over the coming six months edged higher from a reading of 64 points to 65.