The National Association of Home Builders/Wells Fargo Housing Market Index, which gauges monthly builder sentiment, fell one point to 67 in July, still two points above its year-ago level.

The NAHB/Wells Fargo HMI is derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Home builders are asked to rate current sales of single-family homes as “good,” “fair” or “poor.” They are also asked to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for responses to each component are used to calculate a seasonally adjusted index, where any number over 50 indicates that more builders view sales conditions as good than poor.

“Home sales continue to run hot this summer, and most builders don’t see a slowdown on the horizon,” said NAHB President Bobby Rayburn, a home and apartment builder from Jackson, Miss.

The only significant decline registered in the HMI this time around was in the component index gauging traffic of prospective buyers, which fell three points from an above-average level in June. Meanwhile, the component gauging present single-family home sales remained unchanged at a solid 73 – still well above its 69 level a year ago – and the component gauging builder sales expectations for the next six months declined a point to 73.

“Long-term mortgage rates subsided back to around 6 percent during the HMI survey period, and this likely contributed to builders’ optimism,” explained NAHB Chief Economist David Seiders. “Beyond that, the continuing robust rate of home-price appreciation, high level of new household formations and perceptions of an improving economy are also helping drive the market.”


What’s your opinion? Send your Letter to the Editor to

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription