Housing Market Index Unchanged

The housing market index is unchanged in the July report at 68, a strong level but still down from the low 70s posted earlier this year and as recently as May. The lack of acceleration in this index belies what have been solid gains in new home sales and also housing starts and permits. The report notes that the high cost for construction materials is a negative for home builders.

Component readings show current sales unchanged at a very strong 74 and with future sales at 73 for, however, a 2-point dip. Traffic continues to lag but is still over 50 at 52. Regional data show the West out in front at a 3-month average of 75 with the South at 70. The Midwest is at 65 and the Northeast at 57.