The National Association of Home Builders/Wells Fargo Housing Market Index slowed to 64 in July, a two point decrease from July’s downwardly revised reading of 66.
“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “This is hurting housing affordability even as consumer interest in the new-home market remains strong.”
All three HMI components posted losses in July but remained at historically solid levels. The component measuring current sales conditions fell two points to 70; the component measuring sales expectations in the next six months decreased two points to 73, and the component measuring buyer traffic moved down one point to 48.
The regional three-month moving averages for HMI scores showed gains in just one of the four regions. The Northeast edged one point up to 47, while the Midwest and West each dropped one point to 66 and 75, respectively. The South fell three points to 67.
Read the NAHB release.