US NAHB Index: Economy supports housing demand but costs are rising - Wells Fargo

According to analysts from Wells Fargo, solid economic growth supports housing demand but rising input costs remain a top concern. The NAHB/Wells Fargo Housing Market Index remained unchanged in July at 68. 

Key Quotes: 

“Builder confidence remained solid in July, with the HMI unchanged at 68. Single-family demand remains at a high level, with the present sales index also remaining unchanged at 74. Today’s reading is consistent with likely solid gains in singlefamily starts later this summer.”

“Builder outlook was mixed, as the future sales index dropped 2 points, while the prospective buyer traffic index rose 2 points.”

“Although demand remains solid, builders continue to cite rising material costs amid recently-imposed tariffs as a key challenge in meeting rising demand. The June PPI report showed construction materials and components running at a 10.4 percent 3-month annualized rate, the second-fastest pace since September 2008.”