U.S. NAHB housing market index rebounds in July, housing sector likely to recover steadily in 2017

The U.S. NAHB housing market index of homebuilder confidence improved in July. The index rose four points to 68 in the month, as compared with consensus expectations of 66. The rebound was mainly due to a rise in expectations for present and future single-family home sales. The present single-family home sales index was up 4 points to 74, while the future sales index rose by 5 points to 78. The index for prospective buyers’ traffic was slightly changed at 49.

Region wise, the improvement in sentiment was widespread. In recent months, homebuilder sentiment has stayed at solid levels despite of elevated mortgage rates. Moreover, the forward looking indicators, which have some predictive capacity of housing starts activity six months ahead, continue to be on a solid footing, noted Barclays in a research report.

“In all, we continue to expect a steady, albeit modest, recovery in the housing sector this year”, added Barclays.

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