Housing Market Index Indicates Momentum Into Year End

A slight dip doesn't disturb the rising trend for home builders who all year, after a rough end to a poor 2018, have been enjoying improving conditions. The housing market index fell back 1 point to 70 in November which, outside of October's 71, is the best showing so far this year. Six-month sales, at 77, lead components with present sales right behind at 76 and traffic still over 50 at 53, which though subdued relative to the sales components, is among the very best readings of the expansion. Today's report should confirm expectations for acceleration into year end and perhaps a second straight positive contribution from residential investment to quarterly GDP.