The National Association of Home Builders/Wells Fargo Housing Market Index was 63 in October, down from a reading of 65 in September, but still well above the peak of 61 over the prior nine months.
“The October reading represents a mild pullback from a jump in September, and indicates that the housing market continues to make slow and steady gains,” said NAHB Chief Economist Robert Dietz. “Moreover, mortgage rates remain low and the HMI index measuring future sales expectations has been over 70 for the past two months. These factors will sustain continued growth in the single-family market in the months ahead.”
Two of the three index components posted losses in October. The component measuring current sales conditions decreased 2 points to 69, and the index measuring buyer traffic fell 1 point to 46. The sales expectations component rose 1 point to 72.
The regional three-month moving averages for HMI scores increased. The Northeast, Midwest and South each rose 1 point to 43, 56 and 65 respectively. The West rose 2 points to 75.