NAHB housing market index edges up 2 points

The National Association of Home Builders/Wells Fargo housing market index nudged up two points to 60. This was slightly above the reading of 59 expected by economists and marked the highest reading since January.

The component gauging current sales conditions popped one point higher to 64, while the index charting sales expectations in the next six months edged up five points to 70. Finally, the component measuring buyer traffic was up three points to 47.

“Builders in many markets across the nation are reporting higher traffic and more committed buyers at their job sites,” said NAHB chairman Ed Brady, a home builder and developer from Bloomington, Illinois. “However, our members are also relating ongoing concerns regarding the shortage of buildable lots and labour and noting pockets of softness in scattered markets.”

Meanwhile, NAHB chief economist Robert Dietz, said: “Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016.”