Homebuilder Sentiment Strong And Moving Higher

Sentiment among the nation's home builders is strong and moving higher this month, to an index level of 70 vs a downwardly revised 68 in April. May's index got a lift from present sales which rose 2 points to 76 while 6-month sales held unchanged at 77. Traffic is unchanged for a third month in a row at 51, a modest level reflecting a continued lack of first-time buyers. Regional composite data have the West out in front followed by the South and Midwest with the Northeast lagging but still growing. The new home market looks to be the continued center of strength for the housing sector. Watch tomorrow for housing starts and permits in data for April.