Homebuilders remained confident as the housing sector firmed up through the first half of the year.
The National Association of Home Builders said sentiment fell 1 point, to 59, in July in the latest Wells Fargo Housing Market Index released on Monday.
{mosads}”For the past six months, builder confidence has remained in a relatively narrow positive range that is consistent with the ongoing gradual housing recovery that is underway,” said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ill.
“However, we are still hearing reports from our members of scattered softness in some markets, due largely to regulatory constraints and shortages of lots and labor,” Brady said.
Any number over 50 indicates that more builders view conditions as good than poor.
The housing market is a significant contributor to economic growth and has gotten a boost from stronger jobs growth and historically low mortgage rates.
“The economic fundamentals are in place for continued slow, steady growth in the housing market,” said Robert Dietz, NAHB’s chief economist.
“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,” Dietz said.
All three index components edged lower in July.
The components measuring current sales expectations fell 1 point, to 63, while buyer traffic also dropped 1 point, to 45.
Sales expectations in the next six months posted a 3-point decline, to 66.
Regionally, the three-month moving averages are holding steady.
The Northeast, Midwest and South were unchanged at 39, 57 and 61, respectively. The West edged 1 point higher, to 69.