Home Builders Optimism Drops Slightly

Home builders may be moderately less optimistic but June's index level of 64, though down 3 points, is outside of May's 67 the second best score since October last year. Both current sales and 6-month sales edged lower but remain very strong at 71 and 70. Traffic, at 48, also edged lower and remains deeply depressed, as it has been this whole economic cycle.

Composite scores show the West, despite slipping 4 points, still out in front at 69 with the South unchanged at 68. The Northeast follows at 60 with the Midwest at 59.

Though lower than expected, today's housing market index nevertheless points to continued improvement for the new housing market. Housing starts and permits in May will highlight tomorrow's calendar and are expected to hold onto April's strong gains.