The NAHB housing market index for June is out at 10 a.m. ET.
Economists polled by Bloomberg are looking for homebuilder sentiment to rise to 45, from 44 the previous month.
Investors track this index because it is a leading indicator for housing starts. Moreover, in recent months it was reported that affordable mortgage rates were helping buyers.
But mortgage rates have been rising and while these haven’t impacted purchase applications, they have weighed on refinance applications, so it will be interesting to see how homebuilders are interpreting the rise in mortgage rates.
The National Association of Home Builders’ housing market index is a sentiment index in which respondents rate not just the housing market but also the economy in general.
The index draws on builder perceptions of current single-family home sales and sales expectations for the next six months. It also includes builders’ expectations of traffic of prospective buyers. A reading of 50 shows that an equal number of builders view the market as good or bad.
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