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First Cut: NAHB Housing Market Index dips in June, still reflects good conditions

The NAHB/Wells Fargo Housing Market Index dipped to 64 in June after a rise to 66 in May. While the reading was below expectations, it is still one consistent with good conditions for the housing market. Present sales of single-family homes were hardly changed (71 in June after 72 in May, expectations were off from recent months but still quite solid (70 after 72), and buyer traffic was down only slightly (48 after 49). While the headline may be a disappointment relative to forecasts, it should not be for the improved health of the housing market in the first half of 2019 from conditions in the second half of 2018.

The 2 point decrease at the headline was the second strongest since 68 in October 2018. It would appear that activity picked up in April and May and used up some pent-up demand in the rush to lock in lower mortgage interest rates. Since rates are now the lowest in nearly two years, it may stimulate another wave of consumers entering the housing market.

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