Builder confidence in the market for newly built single-family homes in July dropped two points to a level of 64 on the National Association of Home Builders/Wells Fargo Housing Market Index.
The HMI consists of three components: Current sales conditions fell two points to 70; sales expectations in the next six months decreased two points to 73; buyer traffic declined one point to 48.
"The HMI measure of current sales conditions has been at 70 or higher for eight straight months, indicating strong demand for new homes," said NAHB Chief Economist Robert Dietz in a statement. "However, builders will need to manage some increasing supply-side costs to keep home prices competitive."
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