Headline: The NAHB’s housing market index blew past expectations, surging to 25 in January, against last month’s reading of 21.
This was the fourth straight rise in the housing market index. Home builder confidence is at its highest level since 2007.
This comes after another bullish housing data point this morning — which saw mortgage applications jump 23.1% in the week ending January 13.
Expectations: Expectations are for the housing market index to hold steady at 22.
Analysis: The National Association of Home Builders housing market index is a good gauge of the demand for housing and the health of the economy. The index includes new home sales and expected sale of new homes in the coming six months.
Investors also watch for a ripple effect in the economy, since homebuyers would also increase spending on durable household goods.