Building confidence in the newly built, single-family home market dropped one point to 59 in July on the National Association of Home Builders/Wells Fargo Housing Market Index, versus June’s reading of 60.
The HMI consists of three components: current sales expectations and buyer traffic each fell one point to 63 and 45, respectively, while sales expectations in the next six months recorded a three-point decrease to 66.
"The economic fundamentals are in place for continued slow, steady growth in the housing market," said NAHB Chief Economist Robert Dietz in a statement. "Job creation is solid, mortgage rates are at historic lows and household formations are rising. These factors should help to bring more buyers into the market as the year progresses."
Regionally, the HMI in the Northeast, Midwest and South remained the same at 39, 57 and 61, respectively, in July. The HMI in the West inched one point higher to 69.
