The National Association of Home Builders (NAHB)/Wells Fargo housing market index for June rose two points to 60. The reading was higher than the consensus forecast of 59 from a Bloomberg survey of economists. In October 2015, the NAHB index reached 64, its highest level since the end of the housing boom in late 2005.
An index reading above 50 indicates that more builders view sales conditions as good than view them as poor. The June index is the highest since January.
The current sales conditions sub-index for June rose from 63 to 64 and the sub-index that estimates prospective buyer traffic jumped three points, from 44 to 47. The sub-index measuring sales expectations for the next six months rose five points from 65 to 70.
The NAHB’s chief economist said:
Rising home sales, an improving economy and the fact that the [housing market index] gauge measuring future sales expectations is running at an eight-month high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016.
In the NAHB’s regions, the three-month moving average index changed in all four regions. In the West, the index rose a point to 68, and two points to 61 in the South. The index dropped two points in the Northeast to 39. In the South and the Midwest, the index score fell by a point to 57.
The current average interest rate for a conventional 30-year fixed mortgage loan is 3.56%, according to Mortgage News Daily. That’s down about six basis points compared with May rates. The 52-week range for conventional 30-year fixed loans is 3.55% to 4.20%.
The NAHB/Wells Fargo housing market index has remained in the 60-point range since June of last year. Prior to mid-2013, the index had not risen to 50 since mid-2006.
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