US housing market index rises for third consecutive month

The National Association of Housebuilders/Wells Fargo housing market index increased for a third month in a row.

The index rose to 44 in March, the highest reading since September 2022 and beating market forecasts for a reading of 40.

The gauge for current sales conditions increased to 49 from an upwardly revised print of 47, while prospective buyer traffic edged 3 points higher to 31 - a six-month high.

On the other hand, sales expectations for the next six months fell slightly to 47, down from 48.

NAHB chief economist Robert Dietz said: "While financial system stress has recently reduced long-term interest rates, which will help housing demand in the coming weeks, the cost and availability of housing inventory remains a critical constraint for prospective home buyers."

Reporting by Iain Gilbert at Sharecast.com